On 1 April 2016 the Conservative Government introduced a new minimum rate of pay that applies to all UK workers aged 25 and over. Called the National Living Wage (NLW), it requires that eligible employees are paid a minimum of £7.20 per hour. That is an increase of 50 pence per hour on the National Minimum Wage (NMW) of £6.70 that previously applied (and still applies to workers aged under 25), and so will result in increased employer costs of up to 7.5% for each eligible worker.
It is reported by the Department for Business, Innovation & Skills (BIS) that this represents the largest annual increase in the national minimum wage made by any G7 country since 2009, and that it will benefit more than 1 million UK workers. BIS also claims that those eligible for the new rate may see their pay increase by up to £900 each year.