The Resolution Foundation, a non-partisan think-tank and charity, has forecasted that that the National Living Wage (NLW) will increase to £7.50 per hour in April 2017.
The Foundation, which works to improve the living standards of those in Britain on low to middle incomes, anticipates that due to weak pay growth (which it chiefly attribute to the UK’s vote to leave the EU), the expected increase in the NLW will be 10p less than previously expected.
Stephen Clarke, policy analyst at the Foundation remarked: “The National Living Wage relates to average earnings and because of Brexit, many forecasters, including the Bank of England, revised down their earnings growth; therefore the National Living Wage has also been revised down.”
The NLW, which was introduced in April 2016 and currently stands at £7.20 per hour for workers aged 25 and over. This revised increase would still will mean a pay rise of up to £600 for full-time workers who currently are in receipt of the NLW – meaning bout 4 and half million workers would benefit from the increase.
Further details regarding the NLW increase are expected as part of the Autumn Statement in November 2016.