The Budget introduced a new ‘National Living Wage’ with effect from next year.  It will be compulsory for employees aged 25 and over and will start at the rate of £7.20 per hour, effective from 6 April 2016.  It is planned to reach £9 per hour by 2020 and the Low Pay Commission will recommend future rises to achieve the Government’s aim that it will reach 60% of median earnings by 2020. The National Minimum Wage rates will still apply to those employees under 25.