South Shropshire MP Philip Dunne has welcomed workers on the National Living Wage receiving a 5% pay rise today, worth an extra £690 over the course of the year, in the biggest pay rise for low paid workers in 20 years.
From 1st April, the National Living Wage will go up by the highest rate since it was first introduced, to £8.21 per hour – giving almost two million of the lowest paid a pay rise. This increase means that a full-time worker receiving the National Living Wage will be more than £2,750 better off over-the-year compared to 2015. The Conservatives introduced the National Living Wage in 2016.
The new tax year on 6th April will also see the Personal Allowance increase to £12,500, meaning a typical basic-rate taxpayer will take home £130 more than in 2018-19. Fuel duty has been frozen for the 9th successive year, saving the average driver over £1,000.
Mr Dunne said:
“Today’s pay rise is good news for employees in South Shropshire on the National Living Wage, who will earn an extra £690 over the course of the year. Alongside this increase, the new tax year sees the personal allowance – the amount of money you can earn before income tax – increase to £12,500, and fuel duty frozen for the 9th year in a row.
These measures taken together will really help the lowest paid in South Shropshire with the cost of living, and today’s pay rise means more hard cash in the pockets of hard-working people at the end of each month – which is very welcome.”
The changes coming into effect from the 1 April will mean:
Around 2.1 million workers are set to benefit – this includes 1.8 million people receiving the National Living Wage who will receive an additional £690 over the year – as the biggest ever increase to NLW comes into effect.
The National Minimum Wage is also increasing, to £7.70 per hour for 21 to 24-year olds and to £6.15 for 18 to 20-year olds, with workers in the retail and hospitality sectors due to benefit the most.