When Chancellor of the Exchequer Savid Javid announced proposals to increase the National Living Wage, (NLW) whilst at the same time lowering the age threshold from 25 to over 21, there were mixed reactions from UK businesses.
In his speech at the Conservative Party conference, held in Manchester he stated ‘’we will reward the hard work of all millennials by bringing down the age threshold for the national living wage to cover all employees over the age of 21.”
The current national living wage rate, set in April 2019, is £8.21 an hour for all employees aged 25 and over.
The new proposals set out a five- year plan, ending in 2024 which would see those aged over 21 receiving £10.50 bringing them in line with the NLW rate for those aged 25 who will be receiving this amount of National Living wage.
The proposed reduction to the age threshold will be applied in two stages; entitlement to those aged 23 is intended to take effect in 2021, with the final stage to age 21 in place by 2024.