Chancellor Rishi Sunak announces increase in National Living Wage

The Chancellor has announced an increase in the National Living Wage, which will be extended to people aged 23 and above.

The 2.2 per cent hike in the National Living Wage will bring it to £8.91 an hour and the extension to a lower age range will see around two million people benefiting.

Rishi Sunak outlined his Spending Review to MPs in the House of Commons today as he said that the National Living wage - payable currently to those aged 25 and above - will increase.

And the age range for recipients of the National Living Wage will be lowered to those people who are aged 23 and over. Under current arrangements, they would receive the lower National Minimum Wage.

The National Living Wage is to rise - and is being extended to those aged 23 and over (Copyright Unknown)

As of April 2020, people over 25 currently receive at least £8.72 an hour, with those who are 21-24 receiving at least £8.20, those aged 18 to 20 receiving at least £6.45 and under 18s £4.55 an hour. Apprentices, meanwhile, get at least £4.15 an hour.

Mr Sunak said: “Taken together, these minimum wage increases will likely benefit around two million people.”

On departmental spending, the Chancellor said it will total £540 billion next year before noting: “Over this year and next, day-to-day departmental spending will rise, in real terms, by 3.8 per cent – the fastest growth rate in 15 years."

In order to receive the National Minimum Wage, you must be of school leaving age.

And in order to get the National Living Wage under current arrangements, you must be aged 25 as the minimum wage applies to those beneath this age range.

However, Mr Sunak announced an extension of the NLW to those who are 23 and above.

He warned the economic emergency caused by coronavirus has only just begun and there will be “lasting damage” to the UK, Chancellor Rishi Sunak said as he set out his Spending Review.

Official forecasts showed the UK economy was expected to shrink by 11.3 per cent this year, the worst recession for more than 300 years.

The Chancellor told MPs that the Office for Budget Responsibility did not expect the economy to return to its pre-crisis levels until the end of 2022.