Millions of workers set to benefit as UK hikes minimum wage
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Around 2m of the UK’s lowest-paid workers will receive a “well-earned” pay rise from today following increases in statutory minimum wages.
Workers are being urged to check their pay packets as the National Living Wage rises by 2.2 per cent to £8.91, the equivalent of more than £345 a year for a full-time employee. It will also be extended to 23 and 24-year-olds for the first time.
The Living Wage Foundation said workers paid the voluntary so-called Real Living Wage will receive £1,150 more over the coming year, and £3,800 in London, compared with those on the statutory rate.
Ministers said the increase means a full-time worker on the National Living Wage will be taking home £5,400 more annually than they were in 2010, and it will particularly benefit workers in sectors such as retail, hospitality and cleaning and maintenance.
In the capital an estimated 18,000 workers are expected to benefit from the minimum wage increase, while 180,000 will be given a living wage pay boost.
“The National Minimum and Living Wages have increased every year since they were introduced, supporting the lowest paid, and despite the challenges we’ve faced recently, this year will be no different,” said Prime Minister Boris Johnson.
“That’s why we’re providing a well-earned pay rise to 2m people, which will be a welcome boost to families right across the UK. To make sure the next generation isn’t left behind, everyone over 23 years old will also now be eligible.”
Business secretary Kwasi Kwarteng said: “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.”
The increases are £8.72 to £8.91 an hour for workers over the age of 23; from £8.20 to £8.36 for those aged 21 to 22; from £6.45 to £6.56 for 18 to 20-year-olds; from £4.55 to £4.62 for under-18s; and £4.15 to £4.30 for apprentices.
Laura Gardiner, director of the Living Wage Foundation, which sets the voluntary Real Living Wage rates – currently £10.85 an hour in London and £9.50 outside the capital – said: “The introduction of the National Living Wage has delivered a solid pay rise to minimum wage workers, and it’s welcome to see the government continuing to commit to ambitious increases.
“However, there is still a substantial gap between this wage rate and one based on the cost of living, with National Living Wage workers falling billions of pounds short of a real Living Wage over the past five years.”