Increases announced in the National Living Wage will mean that hundreds of thousands of people will receive a pay increase. The 2.2 per cent increase in the National Living Wage to £8.91 will mean more than £345 extra per year for someone working full-time. The age threshold at which employes are expected to pay the National Living Wage has also been lowered, for the first time since it was introduced in 2016, from 25 to 23 years old. The Government remains committed to the target of the National Living Wage reaching two-thirds of median earnings by 2024, and this increase allows progress to continue to be made towards it.
John said: “This has been an extraordinarily difficult year for workers across the Henley constituency, but as we recover from the pandemic, this Government is determined to put more money into the pockets of our lowest-paid workers. These increases to the National Living and Minimum Wages will benefit many people giving them a much needed pay rise as we steadily reopen the economy and get more people back to work. This will help to protect the lowest paid and put more money in the pockets of hard-working families – supporting our recovery as we build back better from this pandemic.”
Other rate increases include:
- A 2.0 per cent increase for 21-22 year olds, from £8.20 to £8.36 an hour.
- A 1.7 per cent increase for 18-20 year olds, from £6.45 to £6.56 an hour.
- A 1.5 per cent increase for under 18 year olds, from £4.55 to £4.62 an hour.
- A 3.6 per cent increase to the Apprenticeship Wage, from £4.15 to £4.30 an hour.
These pay increases builds on the unprecedented support the Government has delivered to protect jobs and livelihoods through the pandemic, including protecting 11.2 million jobs through the furlough scheme, £18.9 billion to support 2.7 million self-employed workers to date, and billions of pounds in tax deferrals and grants for businesses.
Last month’s Budget also introduced new measures to cut down on the cost of living by freezing fuel duty for the eleventh consecutive year - saving an average car driver £12.84 per tank and a cumulative £1,600, and freezing all alcohol duties, saving drinkers £1.7 billion.
Commenting the Prime Minister said: “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.”
Business Secretary Kwasi Kwarteng said: “In this toughest of years, we’re protecting workers by putting more money in the pockets of the UK’s lowest paid. To support our next generation of workers, we’ve also lowered the age threshold for the Living Wage to 23 - ensuring even more people have the security of a decent wage. This increase will help millions of families in every corner of the country, while supporting businesses as we prepare to safely reopen our economy and build back better from the pandemic."