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Both the National Living wage and National Minimum wage are set to rise from April.

The National Living wage and National Minimum wage is set to rise by 6.2%, four times the rate of inflation, in what the government said was the “biggest cash increase ever”.

From April 2020, the new rates are as follows:

  • The National Living Wage for ages 25 and above – up 6.2% to £8.72
  • The National Minimum Wage for 21 to 24-year-olds – up 6.5% to £8.20
  • For 18 to 20-year-olds – up 4.9% to £6.45
  • For under-18s – up 4.6% to £4.55
  • For apprentices – up 6.4% to £4.15

Some business groups have warned that any sharp increase in wages will put pressure on firms and they could reduce their spending on training and investment if forced to pay higher wages.

Many businesses have struggled with costs in the recent uncertain times – particularly if buying or selling in the EU –  and the British Chamber of Commerce have said that further wage increases above inflation will put further pressures on cashflows.

An independent report published this year said there has been little or no evidence of job losses as a result of rising national minimum wage levels, however due to lack of suitable evidence there is no report for the impact of the national living wage.  The Low Pay Commission will examine this further in the future with the Government having already committed to implementing some of its previous recommendations.