Millions of workers are set for a pay rise as the National Minimum Wage and National Living Wage increase.
The uplift in wages, which will benefit around 2.5 million people, includes the largest ever increase to the living wage. It will put £1,000 a year more into full-time workers’ pay packets, helping to ease cost of living pressures.
Workers in sectors such as retail, hospitality and cleaning and maintenance will particularly benefit from the rise. Apprentices will also get a large 11.9% increase to their minimum hourly pay, with 21-22 year-olds seeing an immediate 9.8% rise.
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The National Living Wage, the minimum wage for over 23-year-olds, will now move up to £9.50 an hour. Last year, the age threshold for the rate moved from age 25 to 23, meaning that more young workers are now eligible for a higher wage, reports the Liverpool Echo.
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. Recent studies show significant benefits for employers who pay their staff higher wages, which includes higher job retention and staff productivity.
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."
New National Minimum and Living Wage rates from April 1, 2022
National Living Wage - £9.50 (up 6.6% from £8.91)
21-22 year old rate - £9.18 (up 9.8% from £8.36)
18-20 year old rate - £6.83 (up 4.1% from £6.56)
16-17 year old rate - £4.81 (up 4.1% from £4.62)
Apprentice rate - £4.81 (up 11.9% from £4.30)
Accommodation offset - £8.70 (up 4.1% from £8.36)
