National Living Wage Rules Introduce Pay Rises Across the UK

April 1, 2016

New laws that insist employers pay their staff who are aged 25 or over a minimum of £7.20 per hour have been introduced throughout the UK as of April 1st 2015.

It is anticipated that somewhere in the region of 1.4 million people around the country will benefit from an immediate pay rise as a result of the introduction of what is being called the National Living Wage.

Expectations are that the changes will benefit more women than men in the short term, with 900,000 female workers and half a million men set to see an increase to their monthly pay packets in the coming weeks.

The government has said that it expects to see 1.9 million women and 1 million men living and working across the UK experience some sort of increase in the amount of money they earn on an hourly basis by 2020.

“The National Living Wage will play a central role in moving Britain to a higher wage, lower tax, lower welfare economy,” said the chancellor George Osborne in a statement.

“It will also mark the end of the gender pay gap for some of our lowest paid and hardest working people,” he said.

The National Living Wage should result in pay increases for many of Scotland’s poorest people and its introduction as a mandatory minimum rate for anyone aged over 25 has been broadly welcomed.

However, there are some who feel that the £7.20 per hour rate will not go far enough in alleviating many of the financial problems that low-income households in Scotland and throughout the UK currently experience.

A broad range of social action groups have been calling for employers to pay what they consider a living wage, which for Scotland refers to an hourly wage of £8.25.

Employers north of the border can voluntarily commit to paying the ‘Scottish Living Wage’ and be officially accredited as having done so by working with the official body created to support and encourage precisely these commitments.

There are currently 519 organisations in Scotland that are accredited as being Scottish Living Wage employers and who pay their staff of any age no less than £8.25 per hour.

If you are struggling to cope with personal finance pressures or with mounting debt problems then Scotland Debt Solutions could help. Call us directly to arrange a free consultation.

John Baird

Insolvency Adviser

Tel: 0800 063 9250

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