The Government asked the Low Pay Commission to make recommendations for the National Minimum Wage rates such that they are set as high as possible without causing unemployment effects.
In respect of the National Living Wage (NLW), the Government asked the Commission to recommend the rate such that the NLW reaches 60% of median earnings by 2020, assuming sustained economic growth.
The Low Pay Commission recommended that:
- The National Living Wage (for workers aged 25 and over) should increase from £7.50 to £7.83The rate for 21-24 year olds should increase from £7.05 to £7.38
- The rate for 18-20 year olds should increase from £5.60 to £5.90
- The rate for 16-17 year olds should increase from £4.05 to £4.20
- The apprentice rate (for apprentices aged under 19 or in the first year of their apprenticeship) should increase from £3.50 to £3.70.
- The Low Pay Commission has recommended that the accommodation offset increases from £6.40 to £7.00 from 1 April 2018.
The government agreed with all the proposed increases and it was announced in the 2017 Autumn Budget that they will take effect from 1 April 2018. They have said that they will respond to the Low Pay Commission’s Enforcement Report from summer 2017, and will be issuing the Low Pay Commission’s remit for 2018, in due course.
Links:
National living Wage rates/National minimum wage rates
Wouldn’t it be great and think how much TIME it would SAVE you if someone:
- READ all the latest tax news, case decisions, new legislation and articles in tax and then summarised them for you?
- Only alerted you to things that are RELEVANT to you?
How about if that someone also:
- Updated those summaries in REAL TIME for you
- ADDED examples, planning points, toolkits and calculators, and
- Linked all that information together and also provided you with CPD?
Thousands of firms of accountants and advisers are already using www.rossmartin.co.uk as their primary TAX resource.
At a cost of just £1 per day, it’s a no brainer: FREE up your MIND and your TIME (and your wallet).
And...we run our Virtual Tax Partner support service, if you need assistance with a particular query or technical issue.
