Millions receive 'well-earned' pay rise as minimum wage rates increase
| Published date | 01 April 2021 |
| Date | 01 April 2021 |
| Publication title | MyLondon (England) |
This is equivalent to more than £345 a year for a full-time employee.
It is also the first time the NLW applies to people aged 23 and 24.
UK government ministers said the increase means a full-time worker on the NLW will be taking home £5,400 more annually than they were in 2010, and it will particularly benefit workers in sectors such as retail, hospitality and cleaning and maintenance.
Prime minister Boris Johnson said that the increase is a "well-earned pay rise" that will be "a welcome boost to families right across the UK".
But the Joseph Rowntree Foundation said the rise will, for many low-paid workers, be "wiped out" by high housing costs and other financial effects of the coronavirus pandemic.
It added that the UK should move towards implementing the Real Living Wage – currently £10.85 an hour in London and £9.50 outside the capital – to help "tackle the injustice of in-work poverty".
The Living Wage Foundation said workers paid the voluntary so-called Real Living Wage will receive £1,150 more over the coming year, and £3,800 in London, compared with those on the statutory rate.
The minimum wage rates from 1 April:
National Living Wage aged 23 and over – £8.91 per hour 2.2% increase 21 – 22 Year Old Rate – £8.36 per hour 2.0% increase 18 – 20 Year Old Rate – £6.56 per hour 1.7% increase 16 – 17 Year Old Rate – £4.62 per hour 1.5% increase Apprentice Rate – £4.30 per hour 3.6% increase
Mr Johnson said: “The National Minimum and Living Wages have increased every year since they were introduced, supporting the lowest paid, and despite the challenges we’ve faced recently, this year will be no different.
“That’s why we’re providing a well-earned pay rise to two million people, which will be a welcome boost to families right across the UK.
“To make sure the next generation isn’t left behind, everyone over 23 years old will also now be eligible.”
Business secretary Kwasi Kwarteng said: “In this toughest of years, we’re protecting workers by putting more money in the pockets of the UK’s lowest-paid.
“To support our next generation of workers, we’ve also lowered the age...
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