National minimum wage rise kicks in as workers welcome 4.1% pay boost

The national minimum wage has increased, boosting pay for millions of workers.

From April 1, the minimum living wage has risen by 4.1% to £12.71 an hour for eligible workers aged 21 and over, and the minimum wage for 18 to 20-year-olds will increase by 8.5% to £10.85 an hour.

The Government said the increases are expected to benefit approximately 2.7 million workers nationwide and that the new rates will increase the earnings of a full-time employee on the national living wage by £900 a year.

Employees on the national minimum wage will see a £1,500 annual boost.

The minimum rate for 16 and 17-year-olds, as well as those on apprenticeships, will increase by 6% to £8 per hour.

Chancellor Rachel Reeves said in November’s Budget that she had accepted recommendations from the Low Pay Commission so that those on low incomes are “properly rewarded” for their work.

“I know that the cost of living is still the number one issue for working people and that the economy isn’t working well enough for those on the lowest incomes,” she said.

“Too many people are still struggling to make ends meet, and that has to change.

“That’s why today I’m announcing that we will raise the National Living Wage and also the National Minimum Wage, so that those on low incomes are properly rewarded for their hard work.”

Baroness Philippa Stroud, Chair of the Low Pay Commission, said: “The recommendations we made last autumn sought to balance the need to protect the economy and labour market, whilst providing a real-terms increase for the lowest-paid members of society.

“A lot has changed since we gave our advice to the Government last autumn, and we are now beginning to gather evidence for recommendations later this year. The current economic uncertainty makes it essential that the Commission hears from those affected by the minimum wage and builds consensus for evidence-based recommendations.”

Rachel Harrison, GMB national secretary, said: “A wage rise for millions of the lowest paid workers – including hundreds of thousands of young people – is exactly what this country needs.

“Putting more cash in people’s pockets is the best way to ease the cost of living crisis and grow the economy.”