National Living Wage rise for around 2.5 million UK workers
Millions of UK workers will receive a pay rise from today (Friday 1 April), as National Living Wage rise comes into effect.
The uplift in wages, which will benefit around 2.5 million people, includes the largest ever increase to the National Living Wage. It will put £1,000 a year more into full-time workers’ pay packets.
With today’s rise, the yearly earnings of a full-time worker on the National Living Wage will have increased by over £5,000 since the introduction of the National Living Wage by the UK Government in April 2016.
Today’s uplift will particularly benefit workers in sectors such as retail, hospitality and cleaning and maintenance. Apprentices will also get a large 11.9% increase to their minimum hourly pay, with 21-22 year-olds seeing an immediate 9.8% rise. The National Living Wage, the minimum wage for over 23-year-olds, will now move up to £9.50 an hour.
Last year, the age threshold for the rate moved from age 25 to 23, meaning that more young workers are now eligible for a higher wage.
Business Secretary Kwasi Kwarteng said:
“We have never been more determined to make work pay, and by providing the biggest cash increase ever to the National Living Wage from today, we are giving a boost to millions of UK workers.
“While no government can control the global factors pushing up the cost of everyday essentials, we will absolutely act wherever we can to mitigate rising costs.
“With more employees on the payroll than ever before, this government will continue to stand up for workers.”
The new National Minimum Wage and National Living Wage rates are both statutory minimums, and businesses are encouraged to pay workers above these whenever they can afford to do so.
Recent studies show significant benefits for employers who pay their staff higher wages, which includes higher job retention and staff productivity.
In full, the increases from 1 April 2022 are:
The UK Government also announced it will be launching a communications campaign in the coming weeks to help increase understanding among living wage earners around the wages they are legally entitled to, as well as steps they can take if they are concerned they are being underpaid.
Chancellor Rishi Sunak said: “This historic increase will mean a pay rise for millions of hard-working Brits, with an average full-time worker pocketing an extra £1,000 a year. We’re doing everything we can to ensure people keep more of what they earn in these challenging times, with a new Tax Plan that delivers tax cuts for nearly 30 million people as well as £22 billion to help with the cost of living.”
Bryan Sanderson Chair of the Low Pay Commission (LPC) said:
“The Business Secretary’s strong support is especially welcome at this difficult time. Workers on the minimum wage; care for our elderly and sick, harvest and deliver our food, and do a multitude of other tasks which help us all.
“Many public sector workers including for example teaching assistants will also shortly be included. They all deserve to be properly remunerated and respected as key members of our society.
“The Low Pay Commission met with around a hundred representative bodies last year before making its recommendations. We are frequently their main sometimes even their only advocates. With government support we will continue to try to ensure that they do not suffer from the neglect which was so often characteristic of the past.”
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