Millions of UK workers to receive pay boost as National Living Wage increases to £12.21 per hour
Millions of workers across Britain are poised for a significant pay boost in the coming weeks, as the UK Government has confirmed substantial increases to the National Living Wage and Minimum Wage. Starting on April 1, more than three million workers will benefit from increased wages, providing full-time employees with an additional £1,400 annually.
Moreover, around four million more could reap rewards due to ripple effects. The National Living Wage is set to surge to £12.21 per hour, while the National Minimum Wage for younger workers aged 18-20 will climb to £10 an hour – marking a hike that translates to an extra £2,500 yearly for full-time staff.
This initiative is part of the UK Government's Plan for Change, aiming to enhance the financial wellbeing of diligent Britons and stimulate economic expansion. Nonetheless, business chiefs have expressed concerns that they might need to scale back on hiring and investments to manage these costs.
READ MORE: Sir Chris Hoy to host special 'evening with' event in Glasgow this March
READ MORE: 'Unsafe' Glasgow garden fence faces the chop as council takes action
Particularly, those in sectors like pubs, hospitality, and retail argue that these wage increases, coupled with a rise in National Insurance contributions paid by employers, effectively constitute a "jobs tax". This, they say, could impede their capacity to invest and grow, potentially leading to higher consumer prices.
The upcoming changes in April will see:
* The National Living Wage for individuals aged 21 and above increase from £11.44 per hour to £12.21 per hour.
* The National Minimum Wage for 18- to 20 year olds rise from £8.60 to £10.00 per hour.
* The apprenticeship rate, along with the rate for 16- to 17 year olds, go up from £6.40 per hour to £7.55 per hour.
Employment Rights Minister Justin Madders said: "Economic growth only matters if working people feel the benefits. This will be a huge pay bump for millions, putting more money in their pockets and boosting the high street."
Chancellor Rachel Reeves said: "We promised a genuine living wage, and we are delivering. This pay rise will help hardworking Brits cope with the cost of living."
Deputy Prime Minister Angela Rayner said: "We’re fulfilling our promise to make work pay. This is about giving workers the dignity they deserve and helping young people get ahead."
In a landmark move that considers the cost of living and inflation for the first time, the new rates have been set. The Government is taking steps to end what has been described as 'age discrimination' in wages by planning to establish a single adult wage rate in the future. Low Pay Commission Chair Baroness Stroud welcomed the development, calling it a "big step towards a real living wage".
Apprentices are also set to receive a significant uplift in their earnings, with an 18% increase from £6.40 to £7.55 per hour. For an 18-year-old apprentice working in sectors such as construction, this will translate into a substantial increase in their salary. The substantial pay rise follows years of stagnant wages, which, combined with the cost-of-living crisis, resulted in the largest decline in living standards in 200 years.
TUC boss Paul Nowak said: "This will make a real difference to the lowest paid, at a time when one in six are skipping meals just to get by. More money in people’s pockets means stronger high streets and better local economies."
With only weeks to prepare, businesses must ensure they are ready for the payroll changes, as experts caution employers to guarantee correct payment for their workers.