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National Minimum and Living Wage rates rise
Millions of UK workers will receive a pay rise as the National Minimum Wage and National Living Wage rise comes into effect.
According to the Department for Business, Energy & Industrial Strategy, approximately 2.5 million people will benefit from the uplift in wages. The largest ever increase to the National Living Wage. It will put £1,000 a year more into full-time workers’ pay packets, helping to ease cost of living pressures.
The move means that the yearly earnings of a full-time worker on the National Living Wage will have increased by over £5,000 since the introduction of the National Living Wage by the government in April 2016.
Apprentices will also get a large 11.9 per cent increase to their minimum hourly pay, with 21 to 22 year-olds seeing an immediate 9.8 per cent rise. The National Living Wage, the minimum wage for over 23 year-olds, will now move up to £9.50 an hour.
Business Secretary Kwasi Kwarteng said: “We have never been more determined to make work pay, and by providing the biggest cash increase ever to the National Living Wage from today, we are giving a boost to millions of UK workers. While no government can control the global factors pushing up the cost of everyday essentials, we will absolutely act wherever we can to mitigate rising costs. With more employees on the payroll than ever before, this government will continue to stand up for workers.”
The new National Minimum Wage and National Living Wage rates are both statutory minimums, and businesses are encouraged to pay workers above these whenever they can afford to do so.
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