Exact date millions will get a pay rise as living wage rises to £12.10 per hour
In order to keep up with rising costs, minimum pay levels typically increase every year
THE exact date for when millions of workers will get a bumper pay rise when the National Living Wage has been revealed.
The government’s advisory body on minimum wages, the Low Pay Commission (LPC), has declared its intention to increase the statutory amount to £12.10 per hour.
The National Living Wage, currently set at £11.44 per hour, is paid to those who are over 21.
In order to keep up with rising costs, minimum pay levels typically increase annually.
The rate rose 10% from £10.42 in April of this year, and in previous years it has generally increased faster than inflation.
Deputy Prime Minister Angela Rayner promised to “raise the floor on wages,” but Labour wants to go further.
Following their election, Rayner and Business Secretary Jonathan Reynolds directed the LPC to suggest a rise that would cover living expenses and guarantee that the national living wage would not fall below two-thirds of median income.
The LPC has responded by stating that, to match earnings growth, salaries would need to increase by roughly 5.8%, which is a substantial increase from their estimate of 3.9% from March.
This indicates that starting on April 1, 2025, the National Living Wage is projected to increase from £11.44 to £12.10 per hour.
According to the LPC, their suggestions would now include a “floor” of two-thirds of median earnings.
But they pointed out that if earnings growth in 2024 is more robust than anticipated, their current projection may increase even further.
Typically, the government’s Autumn Statement reveals the amount of the National Living Wage increase.
This will take place on Wednesday, October 30.
A spokesperson for the Department for Business and Trade (DBT) said: “We are changing the rules to put more money in working people’s pockets.
“But we have also been clear we need to consider the businesses who pay these wages, employment prospects and the impact on the wider economy, which is what we instructed the Low Pay Commission to do.
“We believe a hard day’s work deserves a fair day’s pay and that’s exactly what our Make Work Pay plans will do, working in conjunction with business.”
At the same time, the government is looking to further shake up the minimum wage rates by introducing a “genuine” living wage by removing age bands for the statutory rate.
It means that those aged 18 and over will eventually be paid the same minimum wage.
However, the DBT hasn’t confirmed when this change will likely come into effect.
Six ways to land a pay rise
By Leah Milner
A PAY rise would be just the thing to ease pressures from the cost of living crisis.
Moneysavingexpert.com recently found in a poll that 38% of its respondents had successfully asked for a raise.
Here, Abby Robbins, who is the founder of recruitment agency yellowbricks.co.uk, has advice on how to do the same . . .
ASK TO RECEIVE: It’s a good idea to get into the habit of asking your colleagues and managers for feedback. This will build your confidence and allow you to show others in the business how important you are to the company.
PREP AHEAD: Think about the words you will use and write down the reasons why paying you more could benefit the business. Think about the objections you might receive and write down counterarguments.
Take a pad and pen to the meeting and note down anything they say.
TIME IT RIGHT: The best time to ask is when you have recently completed a “high-impact task” or where you had praise. During a one-to-one or an appraisal is good, or you could ask for time to have a word privately.
FACE OFF: Getting some face-to-face time will have more impact, and you can see how you are being received.
If you choose to write an email, be clear about what you are asking for in the introduction.
Then add strong work-based examples about why you deserve it.
End it by stating you feel confident that your manager understands your position.
TRACK YOUR TASKS: Keep a diary or notes on your phone of those “above and beyond” moments where the business or the team was improved by your actions. You will be surprised how quickly you forget these “wow” moments.
HAVE A PLAN: If it is a flat no, then ask your manager to explain why. Remain calm and don’t leave the conversation without having an action plan: What will need to happen for you to get the pay rise? Get your manager to set practical objectives to help.
MINIMUM WAGE SHAKE-UP
At the moment, there are two different minimum rates all workers are supposed to get across the UK – the National Minimum Wage and the National Living Wage.
The National Minimum Wage (NMW) is the minimum pay per hour for workers who have left school.
Right now, 18 to 20-year-olds must earn at least £8.60 an hour.
Meanwhile, the National Living Wage is the minimum wage for those over 21, and is slightly higher.
It was previously only available to those over 23, but this was adjusted to 21 and over in November 2023.
It’s currently worth £11.44 an hour.
Young workers aged 18 to 20 are expected to see a substantial increase in their statutory rate after ministers have advocated for pay equal to those over 21.
In July, the LPC was told to narrow the gap between the minimum wage rate for 18 to 20-year-olds and the National Living Wage, which the government said would be the first step towards achieving a single adult rate.
When was the minimum wage introduced?
THE first National Minimum Wage was put in place in 1998 by the Labour government.
It originally applied to workers aged 22 and over, and there was a separate rate for those aged 18-21.
A separate rate for 16-17-year-olds was introduced in 2004, and in 2010, 21-year-olds became eligible for the adult rate of the National Minimum Wage.
The rate is set by the Government each year based on recommendations by the Low Pay Commission (LPC).
NOT ALL IS CHANGING
The National Minimum Wage for children under 18 will not be raised to the same level as that planned for adults.
This means kids aged 16 and 17 still have a slightly lower hourly minimum wage requirement.
Currently, those under 18 are legally required to get £6.40.
Apprentices are paid the same rate, too.
Anyone who thinks they are not getting paid fairly should raise the issue with their employer in the first instance.
If this is ineffective, the next step is to file a complaint on the government’s website.
You can do this by visiting www.gov.uk/government/publications/pay-and-work-rights-complaints.
Employers who do not pay the minimum wage can be publicly “named and shamed”.
Those who blatantly fail to comply are also at risk of facing criminal prosecution.
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