Around two million of the UK’s lowest paid workers are set to receive a pay rise as the increase in national living wage and national minimum wage comes into effect today.
The new levels, which were announced at the Spending Review and prior to the Budget, were recommended by the Low Pay Commission.
Those on the national living wage will receive £8.91 an hour, a rise of 2.2 per cent, which is the equivalent of more than £345 extra per year for someone working full-time.
Since coming into effect in 2016, this is the first time more younger people will be eligible for the national living wage as the age threshold will be lowered from 25 to 23 years old.
In addition to this, national minimum wage for 21–22-year-olds has increased 2 per cent from £8.20 an hour to £8.36, while for 18–20-year-olds it has risen 1.7 per cent from £6.45 an hour to £6.56.
For those under 18, this has increased 1.5 per cent from £4.55 per hour to £4.62. The apprentice hourly rate has also gone up 3.6 per cent from £4.15 to £4.30.
The rise means someone working full time on the national living wage from this month will be taking home £5,400 more annually than they were in 2010.
Chancellor Rishi Sunak says: “We know that the past year has been very difficult for businesses and families across the country. This pay rise will help support employees as we steadily reopen the economy and get more people back to work.
“At the same time, our Plan for Jobs is helping support businesses to recover and create more jobs, with measures such as VAT cuts, business rates relief, and cash grants for the most affected sectors.”
Business secretary Kwasi Kwarteng added that in the toughest of years, the government is “protecting workers by putting more money in the pockets of the UK’s lowest paid”.
He says: “This increase will help millions of families in every corner of the country, while supporting businesses as we prepare to safely reopen our economy and build back better from the pandemic.
“I’d urge all workers to check their pay packet to ensure they’re getting what they are entitled to and remind employers of their duty to pay the correct wage.”
