Minimum wage rises from next April
The Low Pay Commission, which recommends rise in the statutory minimum wage rates, has had its recommendations for rates from 1 April 2017 accepted by the government.
The National Living Wage (NLW) — effectively an enhanced National Minimum Wage for workers aged 25 and over — will rise by 4.2% to £7.50 an hour from £7.20.
However, the 30p increase means that the NLW is still 95p less than the voluntary UK Living Wage of £8.45 an hour set by the Living Wage Foundation, which is calculated on basis of what people need to live. And it’s £2.25 less than the voluntary London rate of £9.75 an hour.
The National Minimum Wage for 21 to 24-year-olds will increase by 1.4% or 10p an hour from £6.95 to £7.05, while the development rate covering 18- to 20-year-olds only rise by 0.9% or 5p an hour from £5.55 to £5.60.
The rate for 16- and 17-year-olds rises by 1.3% or 5p an hour from £4.00 to £4.05.
The apprentice rate increases by 2.9% or 10p an hour from £3.40 to £3.50. This rate is payable to apprentices aged under 19 or anyone in their first year of an apprenticeship unless the firms providing apprenticeships pay more.
Finally, the accommodation offset increases by 40p to £6.40 a day.