Starting April 2022, the UK will increase the minimum wage by more than a pound, to reach £11.44 per hour. This decision impacts workers over 23 who are already receiving the National Living Wage. Previously the rate was £10.42 an hour for workers over 23. Now workers aged 21 and 22 will also receive the National Living Wage. The Chancellor, Jeremy Hunt accepted proposals from the Low Pay Commission which had advised the government on the minimum wage.
The financial rise results in an increase of £1,800 annually for a full-time worker aged 23. Additionally, a 21-year-old will have an effective £2,300 increase per year. The decision means that low-paid workers’ wages will rise in total, and the above inflation rises will benefit an estimated 2.7 million workers.
Apprentices will also receive a pay rise that boosts hourly pay by more than 20%, from £5.28 to £6.40 an hour.
This increase fulfills the Conservative Party’s target to raise the living wage to two-thirds of a measure of average earnings, which aim to “end low pay” in the UK. Mr. Hunt acknowledged that the National Living Wage has helped halve the number of people on low pay since 2010.
Despite the benefits this rise brings to low-paid workers, some in the industry have expressed concerns over higher wage bills. Similar pay rises in previous years caused retail and hospitality companies to voice these concerns. However, as the cost of living increases, the increased wages may alleviate some of the financial strain on low-income households
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