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Commerce and Industry

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New national living wage to give living standards boost to over Yorkshire workers

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More than 75 per cent of workers across Yorkshire have said they will feel more positive for themselves and their families as a result of the introduction of the new National Living Wage, announced by the Chancellor at the Summer Budget.

  • From 1 April workers in the UK aged 25 and over earning the minimum rate of £6.70 per hour will see a 50p increase
  • The new National Living Wage supports the Government’s vision of a higher wage, lower welfare, lower tax society

The findings are part of a new Government survey which also shows that 52 per cent of respondents across the region will feel more motivated at work as a result of the increase in their pay packets.

Over a million workers in the UK aged 25 and over are set to directly benefit from the increase, which sees the current minimum rate of £6.70 increase by 50p. Many will see pay packets rise by up to £900 a year. This will be the largest annual increase in a minimum wage rate across any G7 country since 2009 in cash and real terms.

The survey results coincide with the launch of a new advertising campaign based around real people talking about the positive effect the new National Living Wage will have on their lives.

The advert, which aired on TV this week, features a range of workers from across the UK set to benefit from the new National Living Wage as it increases over the next four years.

Chancellor George Osborne said:

The new National Living Wage is an essential part of building the higher wage, lower welfare, lower tax society that Britain needs and it’s great to see that over a million people will see their living standards boosted when this comes into force on 1 April.

Britain deserves a pay rise and this one-nation government is making sure it gets one, helping more people have the security of a higher wage to provide for themselves and their families.

Business Secretary, Sajid Javid, said:

The Government believes that Britain deserves a pay rise and our new National Living Wage will give a direct boost to over a million people. We are building a more productive Britain and giving families the security of well-paid work.

This is a step up for working people, so it is important workers know their rights and that employers pay the new £7.20 from 1 April this year.

Harriet Boldison, aged 27, of Leeds, West Yorkshire, appears in the advert. She currently earns £7 per hour as a cleaner. She has two children aged 6 and 3.

Under the Government’s new National Living Wage she will get a small pay rise, which, like people across Yorkshire, will put more money in her pocket.

Harriet said:

It will be fantastic. I am trying to keep my head above water all the time and it’s hard work. It will give me a bit of breathing space and some extra money to buy some nice things, especially for the children, such as trips to the cinema.

Harriet supported the National Living Wage, adding:

It will benefit a lot of people. It will encourage people to go for different jobs they wouldn’t have done before, knowing that they will be paid more for doing them.

The campaign will highlight the new wage and tells people to find out more by visiting the website:

The move will support hard working families across the country. They will also benefit from an increase in the personal allowance, taking the lowest paid out of tax, while free childcare will increase to 30 hours, helping household budgets stretch further.

Many UK companies have already pledged to pay at or above the new rate, including Morrisons, Lidl, National Express and Ikea.

The Government is continuing to raise awareness to businesses to make sure they are ready to pay the new wage on 1 April. As part of this, it has published a four-step guide for businesses on the living wage website, asking firms to:

  1.  Check you know who is eligible in your organisation;
  2. Take the appropriate payroll action;
  3. Let your staff know about their new pay rate, and
  4. Check your staff under 25 are earning at least the right rate of National Minimum Wage.

HMRC will have responsibility for enforcing the new National Living Wage in addition to the National Minimum Wage from April 2016 and will take firm action where an employer fails to pay the correct wage.

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