People on the minimum wage will get a rise soon – putting more money in the pockets of some of the poorest workers in the UK.
Some of the lowest-paid workers in the country are set to receive a pay boost as the new National Living Wage, announced in the October 2024 budget, is scheduled to come into effect on April 1.
The minimum wage will see a 6.7% increase to £12.21 an hour for those aged 21 and over. Additionally, young workers aged 18-20 are to benefit from a rise of £1.40, bringing their minimum wage up to £10 an hour, following the Chancellor’s confirmation of the 6.7% hike.
At the announcement, Ms Reeves hailed the move as a “significant step” in fulfilling Labour’s manifesto pledge to establish a “genuine living wage for working people”.
This uplift, endorsed by the Low Pay Commission, translates to an additional £1,400 annually for a full-time worker on the main minimum wage rate, also referred to as the national living wage, starting from April 2025. However, this figure still does not meet the £12.60 per hour UK living wage as determined by the Living Wage Foundation.
Moreover, the Chancellor has declared that the minimum wage for individuals aged 18-20 will climb to £10 an hour, marking an increase of £1.40. This change is expected to positively impact around 3 million people, with officials suggesting that up to four million more could benefit indirectly from the subsequent economic effects, reports Lancs Live.
Business chiefs have raised the alarm that they may need to cut back on hiring and investment due to rising costs compounded by a hike in National Insurance. The increased pressure is felt acutely within pub, hospitality, and retail sectors, where bosses argue that the National Insurance rise alongside wage hikes amounts to a “jobs tax”, putting their ability to invest and grow at risk and possibly leading to higher prices for consumers.
- The National Living Wage for those aged 21 and over rising from £11.44 per hour to £12.21 per hour. .
- The National Minimum Wage for 18- to 20 year olds going up from £8.60 to £10.00 per hour. .
- Increases in the apprenticeship rate, and for 16- to 17 year olds, from £6.40 per hour to £7.55 per hour.
Employment Rights Minister Justin Madders has hailed the pay rise, saying: “Economic growth only matters if working people feel the benefits. This will be a huge pay bump for millions, putting more money in their pockets and boosting the high street.”
Chancellor Rachel Reeves also shared her approval, adding: “We promised a genuine living wage, and we are delivering. This pay rise will help hardworking Brits cope with the cost of living.”
Apprentices too are poised for a notable wage boost of 18%, as their hourly rate jumps from £6.40 to £7.55. For instance, an 18 year old apprentice in the construction industry will enjoy a considerable lift in their take-home pay.