New minimum wage rates take effect

Many of the UK’s lowest paid workers will see extra money in their pay packets this month.

The government’s new national living wage and national minimum wage rates come into effect today (1 April).

Significantly, this is the first time that the rates have taken into account the cost of living and inflation.

Ministers believe this means more than 3m eligible workers will get a pay rise of up to £1,400 a year.

What are the new rates?

The national living wage for those aged 21 and over is now £12.21 an hour - up from £11.44 an hour.

In addition, the national minimum wage for 18 to 20-year-olds has gone up from £8.60 an hour to £10 an hour.

Meanwhile, the rates for 16 and 17-year-olds and apprentices have increased from £6.40 an hour to £7.55 an hour.

TUC welcomes higher wages

The increases have been hailed by the Trades Union Congress (TUC), which said it would make a “real difference to the lowest paid in this country”.

“More money in working people’s pockets means more spend on our high streets,” said TUC general secretary Paul Nowak.

“That’s good for workers and good for local economies.”

Deputy prime minister Angela Rayner added that delivering a pay rise for more than 3m of the lowest paid workers “was a priority for this government”.

“[This] means we’re already giving hard-working people more money in their pockets and a proper wage increase worth over twice the rate of inflation,” she said.

Government ‘spending billions’ to ease cost of living pressures

The government went on to stress that it is “spending billions” on measures to help people with the cost of living.

This, it said, includes:

• freezing fuel duty to help Britain’s drivers
• committing to the triple lock for pensioners
• extending the household support fund and discretionary housing payments
• the warm homes discount scheme
• boosting the carer’s allowance