Over 1 million workers set to benefit with a pay rise up to £900 a year

Posted On: 
1st April 2016

The charity Turn2us comments on the National Living Wage comes into effect today.

The new National Living Wage (NLW) comes into effect today. All workers aged 25 and over will be entitled to earn a minimum of £7.20 an hour – an increase of 50p above the current National Minimum Wage (NMW) rate.

Over a million workers are set to directly benefit from the increase and many will see their pay packets rise by up to £900 a year. Rules on the NLW will be strictly enforced as failure to pay a worker what they are legally entitled to is a criminal offence and could result in an employer being named and fined by HM Revenue and Customs.

Workers under the age of 25 will be entitled to the NMW which is currently £6.70. From 1 October the rate will rise to at least £6.95 an hour, £5.55 an hour for 18-20 year olds, £4 for under-18s and £3.40 for apprentices.

 ‘In work poverty remains a real possibility’

 Simon Hopkins, Turn2us Chief Executive said: “The new National Living Wage will reduce some of the financial pressure on those we help, however in-work poverty still remains a real possibility for many.

“While many will benefit from the rise, it is vital that we don’t forget those who may not see a meaningful increase in income, such as those on zero hours contracts. It is also important that those on low incomes check to see if they may be eligible for additional support, such as tax credits.”

Turn2us help

If you are on a low income, there may be benefits, grants or other financial support available to you. The ‘In work - on a low income' section of our website has information about help you might be eligible for, including information about Working Tax Credit.

You can use our free Benefits Calculator to check your latest welfare benefits entitlements - even if you have checked your benefit entitlements in the past it is worth checking again, especially if there has been a change in your circumstances.

If you’re struggling, you can also check if you might be eligible for a charitable grant or other support by using the Turn2us Grants Search.