National Minimum Wage and National Living Wage increases, as new rates take effect

Three and a half million low-paid workers saw their wages rise yesterday, the 1st of April. The National Living Wage, paid to over-21s, went up by 6.7% to £12.21 an hour and the National Minimum Wage for 18 to 20-year-olds rose by 16% to £10 an hour. A higher hourly rate, known as ‘the Real Living Wage’, paid voluntarily by some UK businesses to half a million people, has also gone up to £12.60 across the UK and £13.85 in London. 

A Press Release from the Department of Business and Trade stated: “The changes will also see a pay boost for Britain’s young people – with the National Minimum Wage for younger workers and apprentices seeing a record cash increase. This is the first step towards removing the unfair minimum wage age-bands that see a 21-year-old getting paid more than a 20-year-old for doing the same job.”

The changes , which took effect yesterday, the 1st April, mean:

• The National Living Wage for those aged 21 and over will rise from £11.44 per hour to £12.21 per hour.
• The National Minimum Wage for 18- to 20-year-olds rises from £8.60 to £10.00 per hour.
• The apprenticeship rate, and for 16- to 17-year-olds rises from £6.40 per hour to £7.55 per hour.

Alongside today’s rate increases, the Department has developed a toolkit for workers, which shares information to help ensure that every worker is paid correctly now that the new rates have come into effect.

The Department for Business and Trade, working with other government departments and external stakeholders, is running a campaign to increase awareness of the rate changes and ensure that workers across all sectors are aware of what these changes mean for them.

TUC general secretary Paul Nowak said:

This increase in the national minimum wage will make a real difference to the lowest paid in this country and setting out a path to end the outdated and unfair youth rates will give young workers a boost up and down the country.

More money in working people’s pockets means more spend on our high streets – that’s good for workers and good for local economies.

Paddy Lillis – Usdaw general secretary said:

“Usdaw very much welcomes these significant pay increases for the lowest paid, after a three-year-long cost of living crisis under the Tories. We are pleased that Labour’s new remit for the Low Pay Commission has resulted in progress towards delivering a statutory real Living Wage and started on the road to ending rip-off youth rates.”

Unison general secretary Christina McAnea said:

“Making work pay is vital to recharge the economy and help hard-pressed families walk a financial tightrope. A decent minimum wage rise gives low-paid workers greater spending power, which they can spend on their local high streets. That can help boost growth and get the UK back on track.”

Rachel Harrison, GMB national secretary, said:

“A much-needed wage rise for millions of low-paid workers is welcome. But in care homes, schools, the NHS, and so many other employers, workers are still not getting the levels of pay they deserve. It’s time that people doing some of the most important jobs in our society start getting proper recognition – starting with decent pay.”

Deputy Prime Minister Angela Rayner said:

This pay rise for over 3 million of the lowest paid workers was a priority for this government and means we’re already giving hard working people more money in their pockets and a proper wage increase worth over twice the rate of inflation.

These changes are part of our Plan for Change – to raise living standards for people across the county, including apprentices and young people, giving them more job security and the huge pay boost they deserve too.

Chancellor of the Exchequer, Rachel Reeves, said:

In the last Parliament, living standards were the worst on record and sky-high inflation was crushing working people’s finances.

Today we have raised the national minimum and living wages, meaning the lowest paid will receive an annual pay boost of up to £2,500 – something that wouldn’t have happened without my Budget last year.

Making work pay is good for workers, will strengthen businesses’ workforces, and will grow our economy for years to come. It’s a key milestone on my number one mission to get more money in people’s pockets as we deliver our Plan for Change.

Business Secretary Jonathan Reynolds said:

We promised to make low pay a thing of the past. Now, as part of our Plan for Change and the biggest upgrade to worker’s rights in a generation, we are delivering that.

Low pay is not only bad for workers, it prevents them from spending on our high streets and allowing local businesses to achieve their full potential.

By ensuring that everyone gets a fair wage for the hours they work, we’re delivering the financial stability needed to kick-start economic growth and ensure our country is fit for the future.

Details of the new rates can be found here.