The minimum wage is increasing (Image: PA)
More than three million workers in shops, restaurants and workplaces across the UK are set to receive a significant pay boost from April.
The Government is presenting legislation to Parliament that confirms a new National Living Wage of £12.21, and a new National Minimum Wage of £10 per hour from April.
Announced in last year’s Budget, the 6.7% increase to the National Living Wage will be worth £1,400 a year for an eligible full-time worker.
The National Minimum Wage for 18 to 20-year-olds is also set to increase by £1.40 to £10 per hour – a record increase, with full-time younger workers eligible for an extra £2,500 a year.
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An impact assessment shows these reforms will put about £1.8billion into the pockets of workers over the next six years, which could have a knock-on effect helping the economy grow in general.
Employment rights minister Justin Madders said: “Economic growth only matters if working people are feeling the benefits.
“This will be a welcome pay bump for millions of workers who, in turn, will spend more in the real economy boosting our high streets.”
Chancellor Rachel Reeves said: “This Government promised a genuine living wage for working people that will support people with the , creating a workforce that is fit and ready to help us deliver our number-one mission to grow the economy.
“This pay boost for millions of workers is a significant step towards delivering on that promise.”
The National Minimum Wage is the minimum amount an employer must pay per hour for most workers. The National Living Wage is the higher rate that applies to workers aged 21 and over.
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The minimum hourly wage for an apprentice is also set to be boosted this year. An 18-year-old apprentice in an industry like construction will get an 18% rise in their minimum hourly pay – a pay bump from £6.40 to £7.55 an hour.
The new pay rates are:
· The National Living Wage for those aged 21 and over will rise from £11.44 per hour to £12.21 per hour.
· The National Minimum Wage for 18 to 20-year-olds rises from £8.60 to £10 per hour.
· The apprenticeship rate, and for 16 to 17-year-olds, rises from £6.40 per hour to £7.55 per hour.
Unions welcomed the announcement. TUC general secretary Paul Nowak said: “The increase in the National Minimum Wage will make a real difference to the lowest-paid at a time when one in six are skipping meals to get by. And moving to end the outdated and unfair youth rates will give young workers a boost up and down the country.
“More money in working people’s pockets means more spend on our high streets – that’s good for workers and good for local economies.
“After workers in the UK have been through the biggest squeeze in living standards in 200 years, this boost to working people’s pay packets is badly needed.”