01 April 2016
National Living Wage comes into force
The new National Living Wage comes into force today (April 1).
The employment law should mean that nine million employees will get a pay hike. The hourly rate is £7.20 for adults, up 7.4% from £6.70. Ministers hope that this amount can be increased to £9 by the start of the next decade.
The Resolution Foundation finds that workers in Yorkshire and the Humber, Wales and the Midlands will benefit most. Here, over a quarter of staff will see their pay grow as a result, compared to only one in seven of London's working population.
Business organisations warn that the new law will force up companies' wage bills, however Union leaders are welcoming the new rate.
But they also question the fairness of a system that could see younger workers miss out.
Frances O'Grady, general secretary of the TUC, is urging ministers not to leave the 21-24 year-old workforce behind. She accepts, however, that the new wage spells welcome news for staff aged at least 25.