Millions of workers in all parts of the UK will receive a pay increase from today (1st April), as the National Living Wage and National Minimum Wage uplift comes into effect.
The rate rises include a +2.2% increase in the National Living Wage to £8.91, the equivalent of more than £345 extra per year for someone working full-time.
For the first time since it came into effect in 2016, more young people will be eligible for the National Living Wage, as the age threshold will be lowered from 25 to 23 years old.
The rise means someone working full time on the National Living Wage from April 2021 will be taking home £5400 more annually than they were in 2010.
Prime Minister Boris Johnson says: “The National Minimum and Living Wages have increased every year since they were introduced, supporting the lowest paid, and despite the challenges we’ve faced recently, this year will be no different.
“That’s why we’re providing a well-earned pay rise to two million people, which will be a welcome boost to families right across the UK. To make sure the next generation isn’t left behind, everyone over 23 years old will also now be eligible.”
Chancellor Rishi Sunak adds: “We know that the past year has been very difficult for businesses and families across the country. This pay rise will help support employees as we steadily reopen the economy and get more people back to work.
“At the same time, our Plan for Jobs is helping support businesses to recover and create more jobs, with measures such as VAT cuts, business rates relief, and cash grants for the most affected sectors.”
The uplift is set to particularly benefit workers in sectors such as retail, hospitality and cleaning and maintenance.