Minimum wage up by 4.9% for over 25s
The national minimum wage is increasing by 4.9% for workers over 25, from £7.83 to £8.21.
It will also increase from £7.38 to £7.70 for those aged 21-24.
Low Pay Commission Chair Bryan Sanderson said: “We are pleased that millions of workers across the country will see an above-inflation pay rise as a result of today’s minimum wage increases.
“Today is particularly significant as it also marks 20 years of the National Minimum Wage.”
Business Minister Kelly Tolhurst said: “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, deliver on this commitment.
“Since the National Living Wage was announced in 2015, it has helped protect the lowest paid – increasing faster than inflation and average earnings.
“Our minimum wage rates are among the highest in the world and, through our modern Industrial Strategy, we are determined to end low pay and workers get a fair day’s pay for a fair day’s work.”
The Chancellor of the Exchequer, Philip Hammond, said: “This government is dedicated to increasing the wages of the lowest paid which is why we introduced the National Living Wage.
“This 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 this change is applauded by workers in the hospitality and retail sectors, small businesses face tighter budgets with this change coinciding with new tax rules.
National Chairman of the Federation of Small Businesses, Mike Cherry, said: “Though small business owners are absolutely committed to helping employees save, auto-enrolment has already cost them significant amounts of time and money.
“Overall, this is a package of changes that increases the costs of running a small business.
“For the first time since 2010, we saw a contraction in the size of the UK business community last year.
“All Ministers and policymakers need to take note, and avoid bringing in new measures that would exacerbate this loss in 2019.”
