National Living Wage to rise to £10.50

Chancellor Sajid Javid has pledged to raise the National Living Wage to £10.50 within the next five years.

Speaking at the Conservative Party Conference, Javid claimed that the policy would ‘help the next generation of go-getters to get ahead’, with the government also planning to lower the age threshold for those who qualify from 25 to 21. This is part of a bid to make the UK ‘the first major economy in the world to end low pay altogether’.

The Living Wage Foundation says the rate should already be £9 across the UK and £10.55 for those in London, substantially more than the current £8.21 rate for over 25s.

Labour recently pledged to raise the National Living Wage to £10 an hour in 2020 and to include all workers under 18 - who currently get a minimum wage of £4.35.

Other pledges made by the chancellor included: £25 billion to upgrade England's road network; £220 million to improve bus networks; and a £5 billion boost to digital infrastructure, with an ambition to connect the hardest-to-reach 20 per cent of the country - upping the earlier target of 10 per cent.