Commission set to recommend national living wage freeze

October 2020

Ministers are reportedly considering halting plans to implement the planned national living wage increase from next spring.

The national living wage is currently set at £8.72 an hour for people aged 25 and over until 31 March 2021.

Chancellor Rishi Sunak said in this year’s Spring Budget that “forecasts would see the rate rise to £10.50 an hour by 2024”.

The wage was expected to hit £9.21 an hour from 1 April 2021. However, the Chancellor contained a caveat in his March speech, saying the rise will only go ahead “if economic conditions allow”.

With the UK economy shrinking by a record 20.4% betweenApril and June 2020, plans for the next incremental increase could be put on hold.

The Low Pay Commission (LPC), which advises the Chancellor, also fears employers cannot afford to raise wages for low earners following the coronavirus crisis.

Bryan Sanderson, chair at the LPC, said:

“There are not many winners in today’s uncertain world.

“Our contribution to help steer a path through the complexity will be to provide a recommendation founded on rigorous research and competent analysis which has the support of academics and both sides of industry.”

The Chancellor is widely expected to announce plans to freeze the current national living wage hourly rates for 2021/22 in his next Budget speech.

Get in touch to discuss outsourcing your payroll.
Business news
Finsbury Robinson

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare.

Contact Us
Recent News

No items found.

See All News

Sign up to our
Monthly Business Newsletter

Sign up to receive our monthly Business Newsletter that will keep you up to date with everything going on in accounting, tax, and finance. 

Finsbury Robinson Services
R&D Tax
Has your company undertaken
any R&D related activities?
Find OUt More
Affected by the
Let Property Campaign?
Find OUt More
Check out our fixed price
Accounting and Business Packages
Find OUt More
Free Book-keeping
Software for all Clients
Find OUt More
Free Auto Enrolment Pensions Advice
Calculate your Contribution!
Find OUt More
Are you aware of the Capital Gains Tax Changes coming?
GDPR Compliance
Find OUt More

Sign up to our Monthly Business Newsletter

Find News Articles by Category

News HomeAccounting
Commission set to recommend national living wage freeze
To get in touch use our Quick Contact Bar:

Monday                 8:30AM – 5:30PM
Tuesday                8:30AM – 5:30PM
Wednesday          8:30AM – 5:30PM
Thursday              8:30AM – 5:30PM
Friday                 9:00AM – 12:30PM
Saturday                                 Closed
Sunday                                   Closed

Finsbury Robinson
237 Westcombe Hill