In the summer budget, the Government announced that a new mandatory National Living Wage (NLW) will be introduced in April 2016 for workers aged 25 and over. This should not be confused with the Living Wage set by the Living Wage Foundation, a campaigning organisation which promotes a voluntary minimum hourly rate of pay calculated according to the basic cost of living.

BIS has now published a policy paper explaining the National Living Wage:

https://www.gov.uk/government/publications/national-living-wage-nlw

The paper explains the reasoning behind the introduction of the NLW and the rates which will apply. At present, adult workers must be paid a minimum of £6.70 per hour. From April 2016, if the worker is aged 25 or over, this will increase to £7.20 per hour.