Tuesday, 20 Apr 2021

Minimum wage set to rise from April – find out how your pay is changing

Millions of people across the country will see a rise in their wages as of April 1, as new minimum wage rates come into force in England.

Rishi Sunak confirmed in today's budget announcement that basic rate workers will get a 2.2% increase, while the National Living Wage rises to £8.91 an hour.

Unlike previous wage increases, this basic rate increase will include workers aged 23 and over, the age group that previously fell under the lower wage bracket.

All the 23 and 24-year-olds that are currently paid £8.20 an hour will be boosted by the news their pay will rise 71 hourly to £8.91 as of next month.

This decision is a U-turn from last year's proposal of a 49p an hour. The increase equates to just a 19p an hour rise basic-rate workers – the majority of whom have already had to endure a 20% hit over the past year due to mandatory furlough.

This follows the news that the current Universal Credit total resides at 6million.

The Chancellor has been accused by unions of "letting down" the swathes of people across the country experiencing financial hardship.

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The Trades Union Congress said: "Workers on the national minimum wage – not least the two million who are key workers – have been let down by the Government's decision to row back on the full planned rise they were promised."

The National Living Wage is the hourly pay rate for those in employment aged 25 or over in Britain.

The minimum wage – which age bracket lowers to those aged 16 and over – will also rise from April.

Sunak claimed: "Taken together, these minimum wage increases will likely benefit around two million people."

How much is the National Minimum Wage going up by in April 2021?

The National Minimum Wage (NMW) is the minimum pay per hour most workers are entitled to by law. The amount you receive is dependent on a worker's age and if they are an apprentice.

Once you reach 25, you qualify for the National Living Wage instead.

Bosses legally have to pay workers the following rates:

  • Aged 25 or over – £8.72 an hour

  • Aged 21-24 – £8.20 an hour

  • Aged 18-20 – £6.45 an hour

  • Aged 16-17 – £4.55 an hour

  • Apprentice – £4.15 an hour

Though apprentices are only entitled to that rate if they are either under the age of 19, or aged 19 or over but are in their first year of apprenticeship.

As of April, those rates above will change to:

  • Aged 23 or over – £8.91 an hour

  • Aged 21-22 – £8.36 an hour

  • Aged 18-20 – £6.56 an hour

  • Aged 16-17 – £4.62 an hour

  • Apprentice – £4.30 an hour

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