The government have announced an increase in the living wage to £9.50 – but how much will minimum wage increase by and when will the changes come into force? Rishi Sunak’s wage plans explained
The UK’s national living wage is set to rise next year, meaning low-paid workers will be in for a pay rise.
It’s believed that the living wage will increase 6.6% for those workers aged 23 and over.
This means that the living wage will go from £8.91 to £9.50.
For those aged between 21 and 22, the minimum will go from £8.36 to £9.18.
The changes announced by the government should mean those on minimum wage will see an increase of roughly £1,000 a year — however labour argue that this money will be swallowed up by future tax rises, increased energy bills and universal credit cuts.
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When will the living wage go up?
The living wage is set to increase to £9.50 in 1 April 2022.
Chancellor Rishi Sunak said the rise “ensures we’re making work pay and keeps us on track to meet our target to end low pay by the end of this Parliament”.
Minimum wage increases from April 2022:
The apprentice rate: £4.30 to £4.81
Minimum wage for under-18s: £4.62 to £4.81
Minimum age for 18 to 20-year-olds: £6.56 to £6.83
Minimum wage for those aged 21-22: £8.36 to £9.18
- Living wage for over-23s: £8.91 to £9.50 an hour
Sara Ogilvie, Director of Policy at Child Poverty Action Group, said: “The minimum wage increase is welcome but it doesn’t compensate for the universal credit cut which has hit both working families and those who cannot work, leaving millions horribly exposed to rising prices and higher National Insurance.
“Hard-pressed households need a package of support to prevent them from being pulled into poverty.
“The Chancellor’s Spending Review must build on the minimum wage rise by restoring the value of children’s benefits, boosting help with childcare costs and widening eligibility for free school meals.”