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UK Growth |
Within the G7 the UK has seen the highest GDP growth as well as there being 2 million jobs being created since 2010 with more being soon predicted by the Office for Budget Responsibility. Due to the growth of GDP and the amount of employed within the UK the government have taken steps to increase wages for those on National Minimum Wage as the economic growth provides a great opportunity to raise national living standards.
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Living Wage introduction |
Commencing in April 16 the UK Government's new National Living Wage shall become law and anyone who is aged 25 years or over shall be legally entitled to a new minimum of £7.20 per hour, which means an additional 50 pence per hour on top of National Minimum Wage. Those below the age of 25 shall only be entitled to National Minimum Wage, which has been attributed to the fact that the lower wage gives those with less experience a different competitive edge against more experienced candidates.
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Why the change? |
Government figures suggest that the latest change shall benefit over one million workers within the UK who are aged 25 years or older. Many individuals will see a pay rise of up to £900 a year, which is the largest annual increase that has been seen since 2009 within the G7 in cash and real terms.
The National Living Wage is being introduced at the same time as a range of different tax cuts, which the government is hoping will help businesses fund the change. |
