Labour Research May 2016


National Living Wage

Chancellor George Osborne’s so-called National Living Wage (NLW) came into force from 1 April, making it a legal requirement for employers to pay workers aged 25 and over a minimum of £7.20 per hour. 

Further rises are in the pipeline as the NLW is due to rise to 60% of median pay for that age group in 2020. 

Osborne borrowed the name “Living Wage”, which is used to describe higher voluntary pay minimums set by the Living Wage Foundation (and in London by the Greater London Authority). 

But the NLW is not a “living wage” as it is not calculated against an assessment of what people need to live on. Instead, it is now part and parcel of the statutory National Minimum Wage, set on the advice of the Low Pay Commission.