The minimum wage is rising from today – and two million workers could see their hourly rates increase as a result of it.
New National Living and Minimum Wage rates came into effect at midnight on April 1, giving a cash boost to scores of workers.
The new levels were recommended by the Low Pay Commission early last year – the organisation that calculates the rates on behalf of the Treasury.
It comes as official Government figures show 4.7 million people are still on furlough – with the vast majority young people who are often the lowest-paid, reports The Mirror.
That is because many tend to work in retail and hospitality - the sectors among those hardest hit by pandemic restrictions.
The new rate for the traditionally higher National Living Wage includes 23 and 24-year-old workers for the first time and equates to an extra £345 annually for a full-time employee.
The increases will see workers aged 23 and over paid £8.91 an hour instead of £8.72.
For 21-22-year-olds, the hourly rate rises to £8.36, and to £6.56 for those aged 18 and 20. Under-18s and apprentices see the rate rise to £4.30 an hour.
Overall, the 2.2% increase is double that offered to NHS workers and above the rate of inflation – the rising cost of living.
Business Secretary Kwasi Kwarteng said: "This increase will help millions of families in every corner of the country, while supporting businesses as we prepare to safely reopen our economy and build back better from the pandemic.
"I'd urge all workers to check their pay packet to ensure they're getting what they are entitled to, and remind employers of their duty to pay the correct wage."
However anti-poverty campaigners suggested the commission was too kind on businesses who are stripping staff every day. They called for rates above £10 an hour.
The general secretary of the Trades Union Congress, Frances O'Grady, said: "Those expecting a decent pay increase today have been let down by the Government's decision to row back on the full rise they were promised.
"TUC analysis shows that one in three key workers earn less than £10 an hour. This can make it tough for them to pay bills and put food on the table.
"Ministers must get the minimum wage up to £10-an-hour to stop millions of working people from living in poverty," she concluded.
The National Living Wage is the hourly rate for those aged 25 or over and working in Britain.
The minimum wage - which applies to those aged 16 and over - will also rise from April.
"Taken together, these minimum wage increases will likely benefit around two million people," Sunak said.
What is the difference between the National Living and Minimum Wage?
The National Living Wage is the hourly rate for those aged 25 or over and working in Britain.
All other workers fall under the Minimum Wage. Both rates are a legal requirement.
How much is the National Minimum Wage going up by in April 2021?
Wages will rise for all workers on April 1, 2021.
Apprentices will have to be paid (at least) £4.30 an hour, under-18s £4.62 an hour, under-20s £6.56 an hour and 21-22-year-olds £8.36 an hour. Those aged 23 and over must be paid a minimum of £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
Some may get a higher rise because their employer is a member of the 'Living Wage' foundation.
This is a separate set of rates set up by the Living Wage Foundation. It's also reviewed annually.
It is based on what campaigners believe workers should be earning (factoring in inflation and so on). Many employers - such as supermarkets - have chosen it in favour of it over the Government's guidelines and therefore pay their workers more.
Currently the Living Wage stands at £9.50 an hour in the UK, or £10.85 if you live in London. The rates apply to all those aged 18 or over.
