The National Living Wage will increase from £8.21 to £8.72 per hour from April 1, 2020.
The rate applies to those aged 25 and over,
The National Minimum Wage increases, due to come in to effect on the same date, are
6.5% increase from £7.70 to £8.20 for 21-24 year olds
A 4.9% increase from £6.15 to £6.45 for 18-20 year olds
A 4.6% increase from £4.35 to £4.55 for Under 18s
A 6.4% increase from £3.90 to £4.15 for Apprentices
According to a government announcement today nearly 3 million workers will benefit from the increases.
The new rates are due to a recommendation from the Low Pay Commission which consulted stakeholders such as unions, businesses and academics.
In September the Chancellor pledged to increase the NLW towards a new target of two-thirds of median earnings by 2024, provided economic conditions allow, which, on current forecasts, would make it around £10.50 per hour.
The government aims to expand the reach of the National Living Wage to cover workers aged 23 and over from April 2021, and to those aged 21 and over within five years. This is expected to benefit around 4 million low paid workers.
County councillor Karen Constantine said although the rise was welcome more needs to be done.
She said: “I welcome the raise in the national minimum wage. But for Thanet it simply doesn’t address our poorly performing labour market and ingrained coastal poverty. Not enough is being done by either of our local conservative MPs or by conservative dominated Kent County Council, whose annual budget is £1.5billion. We need to see a real living wage implemented as a matter of urgency, I remind both of our Thanet MPs of their recent election pledge to raise the NMW to £10.50 per hour.