Increase in Living Wage makes only a small difference to a family’s disposable income

From 1 April the National Living Wage, the legal minimum for workers aged 21 years and over, increased by £1.02 from £10.42 to £11.44 – a 9.8% increase.

Anyone working more than 21 hours a week will be paying income tax and national insurance and those getting Universal Credit will find that their credit will go down.

For them the new £11.44 wage will increase their disposable income (money they have to live on) by only 32p - for them the increase in the National Living Wage is only 3.4%.