Spending Evaluation 2020: Nationwide dwelling wage to extend by 2.2% this April
Rishi Sunak confirmed the increase in his Spending Review 2020, which was set out in Parliament today. The review is a wider macro-economic statement with very little focus on individual consumers – we’ve rounded-up the key announcements below.
When it comes to the national living wage, the 19p increase represents a rise of 2.2%, and the scheme will also be expanded to cover those aged 23 and over – up from those aged 25 and over at present. This expansion is part of a wider Government plan, which aims to extend the national living wage to cover workers aged 21 and over by 2024.
The Treasury estimates this will likely benefit around two million of the lowest paid workers. But the Chancellor hasn’t gone as far as increasing the standard rate to £9.21 – something the Government consulted on earlier this year.
Workers aged under 23 will also see an increase to their national minimum wage rates of between 1.5% and 3.6% depending on their age – we explain the difference between the national living and minimum wages below, and set out the upcoming changes to wages in the table.
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