From 1 April 2016 the National Minimum Wage rises from £6.70 to £7.20 for people aged 25 or over and will be known as the National Living Wage.
The NMW will continue to apply for those aged 21 to 24, with the premium added on top for those aged 25 and over, taking the total hourly rate to the national living wage.
The first increase will be introduced in April 2016, however, when workers will receive £7.20 an hour.
That compares favourably to the current £6.50 an hour minimum wage for over 21s. The government argues that a lower wage must apply to younger people in order for them to “secure work and gain experience” and to “maximise the opportunities” available to them.
A further increase of the National Living Wage to £9.00 is planned for 2020.
For more information see:
ARE YOU RECEIVING BENEFITS? – REPORT THE CHANGE!
If you are working on National Living Wage and receiving any form of means tested benefit or a council tax reduction, make sure you contact the DWP or the local council.
The increase of pay rates on 1 April 2016 may affect the level of benefit you receive.
For example if you are working a few hours as well as receiving income support , universal credit or job seeker’s allowance or any other means tested benefit from the DWP, you should report the pay increase.
Similarly if you get either housing benefit or a council tax reduction from your local council you should report the increase.
The duty to report changes in come is one placed on all benefit claimants and may avoid an overpayment of benefit or an accusation of fraud.
If you risk losing either housing benefit or council tax reduction you may be able to apply for a Discretionary Housing Payment or a Discretionary Council Tax reduction – contact Nucleus or Ealing Advice for more information.