Newly Confirmed Changes to Minimum Wage

Chancellor, Rishi Sunak, to increase minimum hourly rates of pay, due to come into effect from 1^st April 2022

Workers in the UK, over 23 years, are legally entitled to the living wage and will see their hourly pay increase from £8.92 to £9.50.

Workers under 23 years are only entitled to the national minimum wage, which varies based on their age.  The national minimum wage for 21 to 22 year olds is set to increase from £8.36 to £9.18 and for 18 to 20 year olds from £6.56 to £6.83 while for under 18s it will increase from £4.62 to £4.81.

What is the national living wage?

The so-called living wage is the government’s set minimum rate which employers must pay staff aged 23 and over for each hour worked.

This is calculated by the Living Wage Foundation, a campaigning organisation, and is based directly on the cost of living.

According to the foundation, the ‘real’ living wage is currently £9.50 an hour for workers across the UK and £10.85 in London.

What is the national minimum wage?

This is the minimum pay per hour all workers are entitled to.

People classed as ‘workers’ must be at least school-leaving age to claim the wage.

Some workers aren’t entitled to the minimum wage. This includes self-employed people, volunteers, prisoners, or people on pre-apprenticeships schemes.

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