Increases to the The National Living and National Minimum Wage
The minimum wage is a legal right that covers almost all workers above compulsory school leaving age. There are different minimum wage rates for different age groups of workers, as follows:
- The National Living Wage is £8.21. This will increase to £8.72 from 1st April 2020.
- The National Minimum Wage for workers aged between 21-24 is £7.70. This increases to £8.20 from 1st April 2020.
- The development rate for 18-20 year olds is £6.15 per hour. This increases to £6.45 from 1st April 2020.
- The development rate for 16-17 year olds is £4.35. This increases to £4.55 from 1st April 2020.
- Apprentices in their first 12 months of apprenticeship (or aged under 19), must be paid a minimum of £3.90, increasing to £4.15 from 1st April 2020. See our guide to apprenticeships for more information. Apprentices aged 19 or over who’ve spent a year in their apprenticeship must be paid at least the NMW rate applicable to their age.
You can read our full article about the national minimum wage here.
The increase in April 2020 is an increase of more than 4 times more than current inflation rate, which stood at 1.5% in October 2019. In the General Election campaign in 2019 the Conservatives promised to raise the national living wage to £10.50 by 2024, but in early January 2020 said this would only happen “provided economic conditions allow”. The Conservatives had also promised to lower the age threshold for the National Living Wage from 25 to 21.
The Living Wage foundation sets a ‘real living wage’ each year, and this is currently £9.30 an hour outside of London and £10.75 in London. You can read more about the Real Living Wage here.