Chancellor plans to raise National Living Wage to £10.50

On the second day of the Conservative Party conference in Manchester the chancellor Sajid Javid has announced he plans to raise the National Living Wage (NLW).

The NLW will be raised to £10.50 within the next five years and, Javid said he will also raise the threshold from 25 to 21 for those that qualify.

Over 25s currently receive £8.21 however the Living Wage Foundation has argued that the NLW should already be £9 and £10.55 for those who qualify in London.

Javid said, “In 2016, we introduced the National Living Wage, giving Britain’s workers the biggest pay rise in two decades.

“In April, we increased the rate again, making 1.8m workers better off. Putting the number of low paid workers at its lowest level in four decades. Today, I’m delighted to announce that we will be taking this much further.

“Over the next five years, we will make the UK one of the first major economies in the world to end low pay altogether. To do that, I am setting a new target for the National Living Wage: raising it to match two-thirds of median earnings.

“That means, on current forecasts, this ambitious plan will bring the National Living Wage up to £10.50, giving 4m people a well-earned pay rise.”