Millions of workers to benefit as National Minimum Wage rises to £10 an hour

More than three million workers in shops, restaurants and workplaces across the UK are set to receive a significant pay boost from April.

The UK Government will lay legislation on Tuesday that confirms a new National Minimum Wage of £10 per hour and a new National Living Wage of £12.21 from April.

The government says a further four million workers could benefit from the positive spill-over impacts of the rate increases.

Announced at last year’s Budget, the 6.7% increase to the National Living Wage will be worth £1,400 a year for an eligible full-time worker.

The National Minimum Wage for 18-20-year-olds is also set to increase by £1.40 to £10 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.

An impact assessment also published on Tuesday shows the reforms will put around £1.8bn into the pockets of workers over the next six years.

Chancellor 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.”

Scotland Office Minister Kirsty McNeill added: “Our Plan for Change will grow the economy and put more money in people’s pockets, starting with a pay rise for the lowest paid Scots.

“The new minimum wage will take account of the cost of living – a change that will benefit hundreds of thousands of full-time workers in Scotland with an uplift of around £1,400 a year.

“We’re delivering the biggest upgrade to workers’ rights in a generation, including banning zero-hour contracts, ending fire and rehire and ensuing day one rights. We are making work truly pay and raising living standards right across the UK.”

The National Minimum Wage is the minimum amount an employer must pay per hour for most workers, while the National Living Wage is the higher rate that applies to workers aged 21 and over.

The minimum hourly wage for an apprentice is also set to be boosted this year, with an 18-year-old apprentice in an industry such as construction seeing their minimum hourly pay increase by 18.%, a pay bump from £6.40 to £7.55 an hour.  