National minimum wage increases 2017

The National Minimum Wage (1) is the minimum wage paid per hours a worker is entitled to earn the UK. These rates are reviewed each year by the government and are advised by the independent body Low Pay Commission (2) and on 1 April 2017, the rates of the national minimum wage will be increased.

The rate for workers aged 25 and over (the national living wage) increases from £7.20 to £7.50. The rates within the other age bands also increase.

The rates from 1 April 2017 will be:

• £7.50 per hour - 25 yrs old and over

• £7.05 per hour - 21-24 yrs old

• £5.60 per hour - 18-20 yrs old

• £4.05 per hour - 16-17 yrs old

• £3.50 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.

Coming in at £4.05 young workers will be on the same as their counterparts were in 2008.

TUC general secretary Frances O’Grady said (3): ‘Young workers are getting a raw deal, especially those stuck on the minimum wage. As prices rise, their pay simply hasn’t kept up.

Young workers are currently earning the same, in real terms, as those in 2008

‘More and more people rely on the minimum wage, but the pay rates aren’t increasing fast enough. The government’s target of £9 by 2020 now seems a fantasy. The minimum wage needs a serious boost in the coming years, especially for younger workers.’
Living Wage 

Alongside the government set National Living Wage, the Living Wage Foundation (4) sets advisory rates for hourly pay outside and inside London. There are a lot of employers that now adopt the living wages rather than the National Minimum Wage leading the way and making working for them a real benefit.

The Living Wage is reviewed annually in November, and currently stands at £8.45 outside London and £9.75 in London. These rates are widely seen as a better response to the costs of living in the capital and beyond.

References

1. National Minimum Wage and National Living Wage rates - GOV.UK [Internet]. [cited 2017 Apr 3]. Available from: https://www.gov.uk/national-minimum-wage-rates

2. Low Pay Commission - GOV.UK [Internet]. [cited 2017 Apr 3]. Available from: https://www.gov.uk/government/organisations/low-pay-commission

3. Frances O’Grady [Internet]. TUC. [cited 2017 Apr 3]. Available from: https://www.tuc.org.uk/frances-ogrady

4. Living Wage Foundation   For the real cost of living [Internet]. [cited 2017 Apr 3]. Available from: http://www.livingwage.org.uk/