Workers aged over 25 will receive an inflation-busting increase of 33p an hour in their national minimum wage. An above-inflation pay rise of 4.4 per cent starting April 2018 is over the 3 per cent rate of inflation which is in place at the moment. Following this, full-time workers will receive a £600 annual increase. The new national living wage of £7.83 is still less than the £7.90 which was projected in March this year for Budget Responsibility. It is also clear that by 2020 the national living wage may only reach £8.56 and not the £9 per hour as the government heavily publicised in 2016.
Hourly rate increases will also apply for those aged below 25:
- 21 to 24-year-olds will receive a 33p increase and will get £7.38
- 18 to 20-year-olds will receive a 30p increase to bring their rate to £5.90
- 16 and 17-year-old workers will be paid £4.20, after a 15p increase
- apprentices aged under 19 will get £3.70 in their first year, after a 20p increase
The increases are believed to impact nearly 2 million minimum-wage workers in the UK. However, the increase is still lower than the voluntary “real” wage, which is £10.20 in London and £8.75 outside the capital.