National Minimum Wage Boost - Is £9.50 an hour enough?
As with the start of the new tax year, the National Minimum Wage is to increase for millions of workers. This change will take effect in April, and is expected to benefit millions of people. The new rates have been published on the government website, and are as follows:
- 23 and over: £9.50 per hour
- 21 to 22 years old: £9.18 per hour
- 18 to 20 years old: £6.83 per hour
- Under 18 years old: £4.81 per hour
- Apprentices: £4.81 per hour
This change comes after a number of recommendations from the Low Pay Commission, an independent body that advises the government on minimum wage rates.
In April 2022, the National Minimum Wage is to increase by 6.6%. For many workers, this will be a much-needed pay rise. However, it is important to remember that the cost of living has increased by 6.2% over the past year due to the inflation spike. This means that, in real terms, the pay increase is actually very small. In addition, many companies are likely to respond to the higher wage bill by cutting other benefits or increasing prices. This means that, while the National Minimum Wage rise may help some workers in April 2022, it is unlikely to have a major impact on living standards.
What is the Real Living Wage in the UK?
Alongside the National Minimum Wage, there is also an unofficial Real Living Wage calculated by the Living Wage Foundation. This is a campaign, and is based upon the direct cost of living.
From their calculations at the foundation, they have calculated the real living wage at £9.90 per hour for those in the UK, and for those living in London, it’s calculated at £11.05 per hour.
What do you think? Is the rise in minimum wage enough? We’d love to hear what you think! And if you liked this article, please share it with your friends!
