Millions of workers stand to benefit from a pay rise as the National Minimum Wage and National Living Wage rise.
The wage increase, which will benefit around 2.5 million people, includes the largest ever living wage increase. It will inject an extra £1,000 a year into wages for full-time workers, 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 big 11.9% increase in their minimum hourly wage, with 21-22 year olds getting an immediate 9.8% increase.
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The National Living Wage, the minimum wage for over-23s, will now rise to £9.50 an hour. Last year, the age threshold for the rate was raised from 25 to 23, meaning more young workers are now eligible for higher pay, reports the Echo of Liverpool.
The new National Minimum Wage and National Living Wage rates are both legal minimums, and companies are encouraged to pay workers above these rates whenever they can afford it. Recent studies show significant benefits for employers who pay their staff higher salaries, which includes better job retention and improved staff productivity.
Business Secretary Kwasi Kwarteng said: “We have never been more determined to make work pay, and by delivering the biggest ever cash boost to the National Living Wage starting today, we “Let’s give millions of British workers a boost. While no government can control the global factors driving up the cost of basic necessities, we will act absolutely wherever we can to mitigate rising costs.”
New national minimum and living wage rates from 1 April 2022
National Living Wage – £9.50 (up 6.6% from £8.91)
Rate 21-22 – £9.18 (up 9.8% from £8.36)
18-20 rate – £6.83 (up 4.1% from £6.56)
16-17 year olds – £4.81 (up 4.1% from £4.62)
Apprentice rate – £4.81 (up 11.9% from £4.30)
Accommodation Compensation – £8.70 (up 4.1% from £8.36)