The Conservative Government delivered the first budget of their term on 8th July 2015.

One of the headlines was the proposed introduction of a “National Living Wage” (NLW), not to be confused with the voluntary Living Wage promoted by the Living Wage Foundation. This will create a new band of minimum wage payable by employers to workers over 25 years of age. The current existing bands of National Minimum Wage (NMW) will remain for workers under 25.

The NLW will come into force in April 2016, starting at £7.20 per hour and rising to over £9 per hour by 2020. The rise in NMW announced earlier this year will go ahead as planned on 1st October 2015, namely:

  • the adult rate will increase by 20 pence to £6.70 per hour
  • the rate for 18 to 20 year olds will increase by 17 pence to £5.30 per hour
  • the rate for 16 to 17 year olds will increase by 8 pence to £3.87 per hour
  • the apprentice rate will increase by 57 pence to £3.30 per hour
  • the accommodation offset increases from the current £5.08 to £5.35

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