Budget 2015: National Living Wage introduced

Summer Budget 2015

Many workers in the UK are set for a pay rise after George Osborne announced plans for a National Living Wage in his summer Budget speech.

Replacing the minimum wage, it means workers aged over 25 must be paid at least £7.20 an hour as of next year, rising to £9 an hour in 2020.

While further details have yet to be released, it appears the government has opted against introducing a separate, higher Living Wage for those living in London (supporters have long argued that the capital requires a more generous level due to higher costs).

Forcing firms to pay a higher rate will obviously put pressure on employer budgets, especially small firms. As a result, the chancellor says he will cut their national insurance contributions.

Higher personal allowance

In other news relevant to workers, the tax-free Personal Allowance will rise from £10,600 in 2015-16 to £11,000 next April.

According to the Treasury, increases to the Personal Allowance since 2010 mean that a typical taxpayer will be £905 a year better off in 2016-17.

More to follow

You can find the key points of the Budget here.

Osborne Unveils First Tory-Only Budget
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