ON THE UP
Pay rise for three million workers in weeks as living wage rise confirmed – will you be £1,400 better off?
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THREE million workers are set to get a payrise of £1,400 a year from April.
The Government is hiking the National Living Wage - the minimum earnings for workers in the UK who are aged 21 and over - by 6.7% come April 1.
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The figure is set out by the government each year and it usually rises each spring to keep in line with increasing prices.
In April 2024, the rate increased by 10% from £10.42 and has generally risen by more than inflation in recent years.
During the October budget, Chancellor Rachel Reeves said workers would get a rise of 6.7%.
It means the increase to the National Living Wage will be worth £1,400 a year for an eligible full-time worker.
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The government said the move will impact 3 million workers in shops, restaurants and workplaces across the UK.
Reeves also said the National Minimum Wage for 18 to 20-year-olds will be hiked from £8.60 to £10 an hour – a 16.3% rise and biggest increase in the rate on record.
It will see eligible youngsters in full-time employment earn an additional £2,500 a year.
Speaking the time she said: "It was the Labour government that introduced the National Minimum wage in 1999.
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"It had a transformative impact on the lives of working people.""
Today, the government has laid legislation confirming that the new National Living Wage and new National Minimum Wage will take effect from April 1.
It means that the motion has been approved and can officially go ahead.
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Deputy Prime Minister Angela Rayner said: "We’ve taken quick and sensible action to boost wages for millions of lower paid workers who are the backbone and future of our economy.
"This is us fulfilling our promise to make work pay and improve living standards across the country, with record boosts to support young people and apprentices - our skilled workers of tomorrow."
Elsewhere, the minimum hourly wage for an apprentice is also set to be boosted this year, with an 18-year-old apprentice in an industry like construction seeing their minimum hourly pay increase by 18.0%, from £6.40 to £7.55 an hour.
Who gets the National Minimum Wage?
You qualify for the National Minimum Wage if you are of school leaving age, which is usually above 16.
You are eligible to receive the pay rate if you work full-time or part-time.
Apprentices also qualify for a National Minimum Wage, as well as trainees and staff still in their probationary period.
The rates also apply to disabled workers.
Those who are self-employed, voluntary workers, company directors, and family members who live in the home of the employer and do household chores do not qualify for the minimum wage.
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Au pairs, members of the armed forces, and people on a government employment programme are also not entitled to the payment.
Minimum wage changes from April
The changes from April will mean:
- The National Living Wage for those aged 21 and over will rise from £11.44 per hour to £12.21 per hour.
- The National Minimum Wage for 18- to 20-year-olds rises from £8.60 to £10.00 per hour.
- The apprenticeship rate, for 16- to 17-year-olds, rises from £6.40 per hour to £7.55 per hour.
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