Minimum wage increase 2020: How much will minimum wage increase this year? | Personal Finance

Minimum wage will increase once again in 2020, as the Conservative government hopes to raise people’s independent wealth by April, adding up to £1,000 per year to some people’s annual income. The government-led initiative takes effect in less than a month’s time.

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How much will the minimum wage increase in 2020?

The Government estimates a total of 2.8 million people currently rely on the minimum wage for their income, taking home £8.21 per hour.

From April 1, however, the Government has announced it will introduce a new National Living Wage which will add nearly £1,000 to low-paid workers’ income.

The new Government hourly rate is £8.72 for over 25s, a total 6.2 percent pay rise to £930 more per year.

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minimum wage increase 2020 how much minimum wage rise this year

Minimum wage increase 2020: How much will minimum wage increase this year? (Image: GETTY)

Minimum wage increase 2020: Minimum wage

Minimum wage increase 2020: Minimum wage will increase by nearly £1,000 for people this year (Image: GETTY)

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Younger workers will also benefit in April, with changes also coming to two more age bands.

Depending on age, they will see a pay boost of 4.6 to 6.5 percent.

Those aged 21 to 24 and living on the Government-set income will earn the latter amount, which increases from £7.70 to £8.20.

Workers in the 18 to 20 age band have an incoming 4.9 percent increase from £6.15 to £6.45.

Minimum wage increase 2020: Conservative Party Conference

Minimum wage increase 2020: Boris Johnson announced minimum wage plans at the Conservative Party Conference (Image: GETTY)

Under-18s can expect a 4.6 percent increase from £4.35 to £4.55, while apprentices gain an extra 6.4 percent, as their wages rise from £3.90 to £4.15.

The government said estimates from the Low Wage Commission indicate it is on track to have the National Living Wage reach 60 percent of median earnings this year.

Announcing the decision in late 2019, Prime Minister Boris Johnson claimed the wage hike was “the biggest ever cash boost to the National Living Wage”.

He said: “Hard work should always pay, but for too long, people haven’t seen the pay rises they deserve.”

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Minimum wage increase 2020: Frances O'Grady

Minimum wage increase 2020: Frances O’Grady said the raise was “long overdue” (Image: GETTY)

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“Our Government will put a stop to that, giving nearly three million people from Edinburgh to Eastbourne a well-earned pay rise, including the biggest ever cash boost to the National Living Wage. But that’s not all.

“As we enter a new decade, we’re setting our sights higher, to help people earn more over the next five years and level up access to opportunity across our great country.”

Then chancellor Sajid Javid added the lowest-paid people would see a total pay rise of more than £3,600 over the last four years.

The wage hike was “long-overdue” according to Frances O’Grady, the leader of the Trades Union Congress.

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She said: “Workers are still not getting a fair share of the wealth they create.

“And in-work poverty is soaring as millions of families struggle to make ends meet.”

The Conservatives made increasing the National Living Wage a cornerstone of their manifesto in 2019 when they announced their intention to increase the wage to £10.50 per hour over the next five years.

However, the party will only do so if “economic conditions allow”.