New rates will come into effect from April
Later this year, millions across the UK will see a boost of around £975, following announcements made in the Chancellor’s Autumn Budget. People of all ages are set to benefit, although those aged 21 and over will see the most extra cash land in their accounts.
In November, Rachel Reeves confirmed that the minimum wage is set for another increase. The minimum wage is the lowest hourly rate that employers are legally obliged to pay their employees. How much a person receives depends on their age and applies to both full-time and part-time workers.
To qualify for the National Minimum Wage, you must be at least school leaving age, while the National Living Wage applies to those aged 21 and over. From 1 April, the National Living Wage for those aged 21 and over will rise from £12.21 to £12.71 per hour.
On the same day, the minimum wages for those aged between 18 to 20, and under 18, will go up from £10 to £10.85 and from £7.55 to £8, respectively. The rate for apprentices will also rise from £7.55 to £8 per hour.
Apprentices who are either under 19 or aged 19 or over and in the first year of their apprenticeship are entitled to the apprentice rate, while those over 19 who have completed the first year of their apprenticeship are entitled to the correct minimum wage for their age.
For a full-time worker, aged over 21, this increase will provide around an extra £975 a year. However, the following types of workers are not entitled to the minimum wage:
- higher and further education students on work experience or a work placement up to one year
- people working on a Jobcentre Plus Work trial for up to 6 weeks
- share fishermen
- family members of the employer living in the employer’s home
- people on the following European Union (EU) programmes: Leonardo da Vinci, Erasmus+, Comenius
- people who are volunteers or voluntary workers
- people shadowing others at work
- prisoners
- people living and working in a religious community
- workers younger than school leaving age (usually 16)
- workers on government pre-apprenticeships schemes
- self-employed people running their own business
- company directors
- members of the armed forces
- workers on a government employment programme, such as the Work Programme
