How will the minimum wage increases impact you?
Millions of people in the UK on the National Minimum Wage and the National Living Wage will receive a pay rise from today
From Thursday 1st April 2021, millions of people across the UK will see a rise in their pay as the National Minimum Wage and National Living Wage increase.
Around 2 million of the UK's lowest paid workers will benefit, with Prime Minister Boris Johnson describing the increases as a "welcome boost".
But how will the changes affect you?
Who will benefit?
The National Living Wage has increased from ÂŁ8.72 to ÂŁ8.91, a rise of 19p per hour.
The threshold for National Living Wage has also dropped from 25-years-old to 23-years-old, meaning that it is now compulsory to pay 23 and 24-year-olds at least ÂŁ8.91/hour.
Previously, employers could pay people in this age range National Minimum Wage, with National Living Wage kicking in at 25-years-old.
These changes are expected to particularly benefit those working in retail and hospitality as well as cleaning and maintenance.
Meanwhile, the National Minimum Wage has also increased for age groups under 23.
The wage for 21-22-year-olds now stands at ÂŁ8.36, while those aged 18-20 will receive ÂŁ6.56.
Under-18s on Minimum Wage will receive ÂŁ4.62, while the apprenticeship rate has increased to ÂŁ4.30.
How will the changes benefit people?
According to Ministers, the "well-earned" pay rises will help to "support our next generation of workers" and help "millions of families" across the country.
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."
He also urged "workers to check their pay packet to ensure they’re getting what they are entitled to, and remind employers of their duty to pay the correct wage.”
Meanwhile Chancellor Rishi Sunak said: “We know that the past year has been very difficult for businesses and families across the country.
"This pay rise will help support employees as we steadily reopen the economy and get more people back to work."
Are the increases enough?
Some groups have described the changes as "welcome", but are urging the Government to take further action.
General secretary of the TUC, Frances O'Grady said that those expecting a pay rise had been "let down" by the Government: "Those expecting a decent pay increase today have been let down by the Government’s decision to row back on the full rise they were promised.
“TUC analysis shows that one in three key workers earn less than £10 an hour. This can make it tough for them to pay bills and put food on the table.
“Ministers must get the minimum wage up to £10-an-hour to stop millions of working people from living in poverty.”
Laura Gardiner, director of Living Wage Foundation said: "The introduction of the National Living Wage has delivered a solid pay rise to minimum wage workers, and it’s welcome to see the Government continuing to commit to ambitious increases.
“However, there is still a substantial gap between this wage rate and one based on the cost of living, with National Living Wage workers falling billions of pounds short of a real Living Wage over the past five years.