The National Living Wage is an obligatory minimum wage payable to workers in the United Kingdom aged 23 and over which came into effect on 1 April 2016. As of April 2023, it is £10.42 per hour. The National Living Wage was phased in between April 2016 and April 2020, with the aim of reaching 60% of median UK earnings by 2020. For over-25 year old employees, the wage began at £7.20 per hour in April 2016 and was projected to rise to at least £9 per hour by April 2020. The announcement of the National Living Wage was seen as a political coup for the Conservative government because the opposition Labour Party had proposed that the national minimum wage rise only to £8 per hour.
A living wage is defined as the minimum income necessary for a worker to meet their basic needs. It is a socially acceptable level of income that provides adequate coverage for basic necessities such as food, shelter, child services, and healthcare. The goal of a living wage is to allow employees to earn enough income for a satisfactory standard of living and prevent them from falling into poverty. The living wage varies based on the cost of living and taxes where families live. In the United Kingdom, advocates define a living wage to mean that a person working 40 hours a week, with no additional income, should be able to afford the basics for a modest but decent life, such as food, shelter, utilities, transport, health care, and child care.
