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Conservatives pledge £10.50 national living wage from age 21

Wednesday October 2nd, 2019

Sajid Javid has pledged to increase the national living wage to £10.50 an hour and lower the age at which workers are entitled to it from 25 to 21.Sajid Javid

In his speech at the Conservative Party conference, the Chancellor of the Exchequer said the government would increase the national living wage – currently £8.21 – by 27% over the next five years.

For the national living wage to reach £10.50 by 2024, workers on this rate of pay would see their hourly rate increase by roughly 5% each year until then. It is not known whether younger workers who earn the national minimum wage would receive pay rises at the same rate.

That means, on current forecasts, this ambitious plan will bring the national living wage up to £10.50, giving four million people a well-earned pay rise.”

The national living wage is currently on target to reach 60% of median earnings by 2020, but Javid plans to increase this to 66% by 2024. Without this increase, the national living wage would be forecast to reach £9.55 by 2024.

The age threshold for the national living wage will be reduced in two stages. From 2021 it would drop from 25 to 23; and in 2024 those aged 21 and over would qualify. This would require legislative change.

The voluntary Living Wage, set by the Living Wage Foundation, is currently £9.00 per hour or £10.55 in London.

Javid said:

“Over the next five years, we will make the UK one of the first major economies in the world to end low pay altogether.

“To do that, I am setting a new target for the national living wage: raising it to match two-thirds of median earnings.

That means, on current forecasts, this ambitious plan will bring the national living wage up to £10.50, giving four million people a well-earned pay rise.”

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