The UK government just announced record increases to the National Minimum Wage. This balancing act will be felt by young and old alike across the entire US. Read in full Effective immediately, younger employees between the ages of 16 and 20 will experience significant increases in their pay per hour. The National Minimum Wage for 16 and 17-year-olds will go up from £6.40 to £7.55 per hour. Such a change would be an astounding 18% increase! At the same time, the National Living Wage, which applies to everyone over 21, will go up from £11.44 to £12.21, only a 6.7% increase.
The wage increase for 18 to 20-year-olds is more than impressive. As such, they will experience a 16% boost to their average hourly wage, from £8.60 to £10. This change will help younger workers with rising cost-of-living concerns and, more importantly, create fair pay for the entire workforce.
In our hometown of London, the London Living Wage is slated to increase by 70p, hitting £13.85 an hour. This 5.3% increase reflects the higher living costs in the capital and is part of a broader effort to support workers facing economic challenges in urban areas.
While not officially required by law, the Real Living Wage has been instrumental for millions of UK workers. Administered by the Living Wage Foundation charitable trust, it focuses on workers aged 18 and up. Currently, upwards of 475,000 workers employed by over 15,000 businesses take advantage of this plan. Employers joining the Real Living Wage movement will need to implement these new rates by May 1, 2025.
The apprentice rate will rise in accordance with the National Minimum Wage proposition changes. This helps them be competitive in the marketplace and ensures that apprentices are paid fairly for their highly-skilled work.