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Stuart Mosley No Comments

Twenty years have passed since the Labour Government introduced the national minimum wage in Great Britain which was implemented to stop unlawful low pay. The Low Pay Commission (LPC), the Government Advisory Board on National Living, and National Minimum Wages, has urged the Government annually to assess the effect of the minimum wage on the UK economy. This was modified in 2016 when the National Living Wage was implemented and left with the low pay commission to deal with. The goal of the low pay commission was to increase the rate by 60% of median earnings by 2020.

Chancellor, Sajid Javid, has announced that the national livelihood will rise to £10.50 over the following five years. He has been on his way to fulfilling his commitment to raise pay by 2024 in October 2019. Two thirds of median income are expected.

Sajid Javid said, “I believe the best possible start to 2020 for millions of hard-working people on lower wages is to give them a pay rise. So that is exactly what we are doing”.

The Chancellor adds “This government believes in bringing everyone up, not in punishing those who succeed”.

The raise from £8.21 to £8.72 will be introduced by staff over the age of 25. They are receiving a pay increase of £930 a year officially. On April 1st this year, the national living wage increases.

 

The rise will affect further age groups. The changes will be as follows:

  • A 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

Boris Johnson, Prime Minister said, “Hard work should always pay, but for too long, people haven’t seen the pay rises they deserve.”

Our government will put a halt to that, giving about three million individuals from Edinburgh to Eastbourne a well-earned pay rise, counting the greatest ever cash boost to the National Living Wage.” But, what does this mean for independent businesses? The 51p increment has been censured for either being way too small or “piling further pressure” on companies.

Additionally, the FSB director of External affairs and advocacy, Craig Beaumont, has commented “There’s always danger of being self-defeating in this space, wage increases aren’t much good to workers if prices rise, jobs are lost and there’s no impact on productivity because employers are forced to cut back on investing in tech, training and equipment.” Urging the government to implement pro-business measures in this financial year.

In April, business rates will also increase by 1.7. Beaumont believes that small businesses will need additional assistance with financial situations.

The government has also proposed that employees aged 21 years will earn a national minimum income by 2024, until their wage exceeds £10.50 an hour. The government also suggested that the low-pay Commission approve the minimum wage.

 

About Stuart Mosley

Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander.  He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.

If you would like to book an appointment then please get in touch and we can arrange a suitable time to discuss further.  We can arrange appointments at a place and time suitable to you, we can discuss your options over the phone or if you prefer email, then this is fine with us.