1.8m workers to receive wage increase as biggest hike to NLW comes into effect

Some 1.8 million workers earning the National Living Wage (NLW) will receive an additional £690 over the year as of this week, as the biggest ever increase to NLW comes into effect.

The National Minimum Wage (NMW) is also increasing. This includes £7.70 per hour for 21 to 24-year olds, providing an additional £580 over the year for full-time workers, and £6.15 for 18 to 20-year olds, providing full-time workers with an additional £455 over the year.

Taken together with changes to NLW, the government announced that 2.1 million people will be receiving a pay increase from Monday, with workers in the retail and hospitality sectors due to benefit the most.

"We are committed to making sure that UK workers get a fair day’s pay and the rise in the National Living and Minimum Wage, benefiting millions of people, delivers on this commitment," business minister Kelly Tolhurst said.

Chancellor of the Exchequer, Philip Hammond said that the government is committed to raising productivity performance across the income spectrum, so that the wages of the lowest paid can increase sustainably over time. 

"While the proportion of low paid jobs is now at its lowest level for 20 years, we are going further by asking Professor Arindrajit Dube, a world-leading expert in the field, to undertake a review of the international evidence of minimum wages on productivity and employment," said Mr Hammond. 

According to the government, the UK’s minimum wage is currently growing faster than other countries with similar or higher minimum wage, such as Belgium, France and Germany.

Later this year, the government is also expected to announce the independent Low Pay Commission’s remit after 2020.