Millions of UK households are set to benefit from up to £2,500 extra per year in their bank accounts from next month as new pay rates take effect.
The Government has confirmed a 6.7% increase to the National Living Wage from April 1, with Chancellor Rachel Reeves describing the boost as a significant step towards a “genuine living wage” for workers.
The pay boost will be worth £1,400 per year for an eligible full-time worker, with those aged over 21 seeing their hourly rates rise from £11.44 to £12.21.
The National Minimum Wage for 18 to 20-year-olds is also set to increase by £1.40 from £8.60 to £10.00 per hour – a record increase which means full-time younger workers eligible for the rate will see their pay boosted by £2,500 a year.
The minimum hourly wage for an apprentice will also rise from April, with an 18-year-old apprentice seeing their minimum hourly pay increase by 18.0% – a pay bump from £6.40 to £7.55 per hour.
Deputy Prime Minister Angela Rayner said: “We’ve taken quick and sensible action to boost wages for millions of lower-paid workers who are the backbone and future of our economy.
“This is us fulfilling our promise to make work pay and improve living standards across the country, with record boosts to support young people and apprentices – our skilled workers of tomorrow.”
The National Living Wage applies to most workers, whereas the National Minimum Wage is the minimum amount an employer must pay per hour for all workers aged below 21.
The Government said this is the first time the National Living Wage has taken into account the cost of living and inflation and marks the first step towards aligning the National Minimum Wage for 18 to 20-year-olds and National Living Wage to create a single adult wage rate.
Low Pay Commission Chair Baroness Stroud added: “The increases we recommended are a big step towards making work pay and achieving a genuine living wage.
“These rates secure a real-terms pay increase for the lowest-paid, and substantial increases for young workers make up some of the ground lost against the adult rate over time.”
