Minimum wage shakeup

We’ve all felt the pinch of the cost-of-living crisis over the last couple of years, with many of us finding the minimum wage is no longer enough to cover our expenses.

And it looks like the government agrees, as the cost of living will now be a deciding factor for setting the rates for the minimum and living wages.

It’s the first time rising living costs will be taken into consideration, so the move is expected to put more money in our pockets.

Business secretary Jonathan Reynolds has written to the independent Low Pay Commission – which advises government about the minimum and living wages – outlining the plans.

The Low Pay Commission has previously called for an over 18s living wage, calling the pay gap “excessive and unfair”.

What other changes are being made?

The government also plans to narrow the £2.84 gap between the minimum wage and the living wage. 

You’ll get the minimum wage if you’re old enough to have left school and if you’re under 21 or if you’re an apprentice. If you’re over 21, you’ll get the living wage instead.

Currently, the hourly rates depend on your age and if you’re an apprentice:

• under 18 – £6.40
• 18-20-year-olds – £8.60
• 21 and over – £11.44
• apprentices (either under 19, or 19 and over in your first year) – £6.40

When will these changes come into effect?

No firm timetable has been put in place for these changes coming in yet, but we'll let you know when there's any updates.