...and decrease to age limit
Conservative Chancellor, Sajid Javid has pledged to substantially increase the National Living Wage from the current £8.21 to £10.50 per hour.
The proposal has already drawn criticism from The Federation of Small Businesses, who speculate that ‘this increase will leave many small employers struggling and, without help, could make some small firms unviable.’
The Chancellor has given a deadline of five years, until 2024, before the new National Living Wage is to be implemented to give businesses significant time to prepare but has also added a further stipulation that workers over the age of 21 will be eligible for the National Living Wage, rather than the current entitlement age of 25.. Should the proposition come to fruition, the Chancellor estimates that this will be beneficial to approximately four million people.
The National Living Wage is a legal requirement that all employers have to observe and adhere to when making payments to employees who hit or exceed a certain age.
The figure of £10.50 was decided by calculating two thirds of median earnings, based on current predictions. It is important to remember that these figures are only speculative and have not officially been confirmed.