Almost 3 million workers in Britain are to receive a pay rise of more than 4 times the rate of inflation from April, after the government said it would increase the official minimum wage.
The government said the “national living wage” for over 25s would increase from £8.21 an hour to £8.72 from the start of April 2020.
Workers over the age of 25 on the legal minimum wage, re-branded as the “national living wage” four years ago, will receive an annual pay rise of 6.2% from April – more than quadruple the level of the consumer price index (CPI) gauge of inflation, which stood at 1.5% in November.
The Treasury said the increase equated to an increase in gross annual earnings of around £930 for a full-time worker on the current minimum rate.
Pay rates will also rise above inflation across all other age groups, including:
• by 6.5% for 21-24-year-olds to £8.20,
• by 4.9% to £6.45 for 18-20-year-olds,
• by 4.6% to £4.55 for under-18s and 6.4% to £4.15 for apprentices.