Government confirms April rise to National Living Wage

Over 3 million workers will receive a pay rise in April after the Government set out the legislation confirming a rising in the National Living Wage and other statutory minimum rates of pay announced in last year’s Budget.

The National Living Wage will rise 6.7% to £12.21 per hour, while the National Minimum Wage for 18-20 year olds will increase to £10. The minimum hourly wage for an apprentice is also set to be boosted this year, rising from £6.40 to £7.55.

The rises come as the calculation to set minimum rates of pay will take the cost of living for workers into account for the first time. An impact assessment published today (4th February) shows that these reforms will put around £1.8 billion into the pockets of workers over the next six years. A further 4 million workers on higher incomes are also expected to benefit from the positive spill-over impacts of the rate increases.

Chancellor of the Exchequer Rachel Reeves said:

“This Government promised a genuine living wage for working people that will support people with the cost of living, creating a workforce that is fit and ready to help us deliver number one mission to growth the economy.

“This pay boost for millions of workers is a significant step towards delivering on that promise.“

Low Pay Commission Chair Baroness Stroud said:

“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.

“It’s important we continue to assess the effects of these changes on employers and workers; to that end, the Low Pay Commission will be consulting with both groups in the coming months.“