NLW to rise by 6.6%
The NLW rise for those aged 23 and over is now 6.6% – up 59p from £8.91 to £9.50 an hour. For those aged 21 and 22, the uplift is from £8.36 to £9.18 (up 82p or 9.8%).
Furthermore, workers aged 18 to 20, the increase is 27p (4.1%) - from £6.56 to £6.83 and for 16 and 17-year-old workers, it is also up 4.1% (19p) from £4.62 to £4.81 an hour.
Apprentice workers will see a rise of 51p (11.9%) from £4.30 to £4.81 an hour while the accommodation offset is up by 4.1% from £8.36 to £8.70.
Previous recommendation
The new rates were recommended by the Low Pay Commission, following consultation and the Government estimated the latest uplift in wages will benefit about 2.5m people and put about £1,000 into full-time workers’ pay.
Last year, the age threshold for the NLW rate moved from 25 to 23, meaning more young workers were eligible for the higher wage.
The Government also said the rise will particularly benefit workers in sectors such as hospitality, retail and cleaning and maintenance.
Immense challenge
Small business minister Paul Scully said: “Acknowledging the immense challenge UK businesses have faced in recent years – particularly our hospitality sector – we have never been more determined to make work pay.
“By raising the NLW to its highest level ever, we are giving a pay rise to thousands of the UK’s fantastic hospitality staff, who have shown themselves to be a shining light within our economy.
“So whether you’re a cook or a cleaner, a barista or a bartender, I would urge you to check your pay to ensure you aren’t missing our on this much-deserved cash boost as we continue working to increase wages right across the UK.”
The Government also announced it will be launching a communications campaign in the coming weeks to help increase understanding among minimum and living wage earners around the wages they are legally entitled to as well as the steps they can take if they are concerns they are being underpaid.
