April marks the start of a new financial year and means good news for workers as it is also the beginning of the National Living Wage.
This initiative from the Government will increase wages for the lowest paid workers giving a significant pay rise with workers in North Warwickshire and Bedworth aged 25 and over legally entitled to at least £7.20 an hour under the National Living Wage. That’s extra 50 pence an hour compared to the previous National Minimum Wage. In other words an average of £20 a week pay rise for a full time worker.
This means that 1.3 million hardworking people across the country are expected to benefit directly from the National Living Wage – which is set to rise to £9 an hour by 2020 – while 6 million could see a pay rise as a result of a ripple effect pushing wages up across Britain.
This is great news for working people, who will also be keeping more of the money they earn due to a cut in income tax. As the Conservatives pledged at the General Election we’re increasing the tax-free personal allowance. From this month the personal allowance will rise to £11,000. That means the first £11,000 you earn per year will be tax free, taking over 1 million of the lowest paid workers out of income tax altogether and gives a tax cut to 31 million across the country.
This is a well-earned pay rise for those who work hard and want to get on in life. Our aim is to deliver a higher-wage, lower-tax, lower-welfare economy.
These initiatives give security to local families and I am proud that it is the Conservative Party who are introducing them. We believe hard work should always pay and want to encourage aspiration.
Workers and employers can find more information online at www.livingwage.gov.uk.