National Living Wage increase raises income of low-paid workers

As of 1 April 2020, the National Living Wage and National Minimum Wage rates have been increased.

The new rates of pay are as follows:

This will be welcomed news to many, especially as those working on the frontline in response to the COVID-19 outbreak.

Low Pay Commission

In Autumn 2019, the Low Pay Commission (LPC), the independent body that advises the government about the National Living Wage and the National Minimum Wage, gave a number of recommendations via a report.

The recommendations have resulted in the National Living Wage rate has reached rate the target of 60 per cent of median earnings, originally set by the Government in 2015.

It is hoped that the by 2024, the National Living Wage will have continued to increase and reach the target of two-thirds of median earnings. This message was delivered in the Budget announced on 11 March 2020. The Government also asked the LPC to advise on whether the economic evidence warranted these increases.

In October, The LPC will make its recommendations to Government on the 2021 National Minimum Wage rates.

COVID-19 Updates

We are continually updating our page "Covid-19 Pandemic: Managing Staff Matters" with the latest announcements of financial measures put in place to support those workers and businesses impacted by the coronavirus outbreak in the UK.

If you have any other questions, particularly if you are trying to work out the best course of action regarding your employees, then we are here to help.

We have a special support package to help employers with this challenge, which includes:

  • Up to 2 hours of advice and guidance on how to manage your employees legally at this time including issues of furlough, lay-off, paying wages, redundancies, etc.

  • Review of your current employment contracts to advise on what your options are in relation to managing the staff situation

  • Guidance on issuing these letters and complying with legal obligations

  • Letters drafted to issue to staff depending on the course of action to take

  • Free updates and information

Click here for full details.

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