NLW increase means good news for agency workers

More than two million workers, including those engaged in agency work, are now benefitting from a pay rise that kicked in this weekend, due to an increase in the National Living Wage.

The changes, effective from Saturday (1 April) mean that 1.7m workers aged 25 and over will see their hourly wages rise by up to 30p to £7.50 per hour. 

For full-time workers on 38 hours per week aged 25 and over, this will translate into an above inflation pay boost of 4.2%, or around £600 per year.

In addition, around 200,000 workers aged 24 and under will benefit from the second rise in the National Minimum Wage in six months.

Business minister Margot James, said: “The government is committed to creating an economy that works for everyone and today’s rate rises are great news for some of the UK’s lowest paid workers.”

She added: “Every worker in the UK is entitled to at least the NMW or NLW and we are determined [to ensure] that they get it.”

As such, James urged employees to check their pay slips to ensure the changes have been actioned by their employers. In the event of a discrepancy, they are asked to contact Acas, the organisation for employment dispute resolution.

As of 1 April, the new rate bands are as follows:

• Workers aged 25 and over will be £7.50 per hour
• 21 to 24-year-olds will be £7.05 per hour
• 18 to 20-year-olds will be £5.60 per hour
• 16 to 17-year-old will be £4.05 per hours
• Apprentices will be £3.50 per hour

The new rates are based on the recommendations of the independent Low Pay Commission, which took into account the views of businesses and employee groups. 

In a statement marking the introduction of the increased rates, the government signalled its intention to crack down on companies failing to pay their workers properly. It claimed that the government would spend around £25.3m on enforcing the minimum wage.

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