What the difference is and how much UK prices will rise in April 2022

An increase to the minimum wage rates will become effective this spring as Britain is fighting a cost of living crisis.

The increase will mean that the country’s lowest paid workers will receive £ 1,000 extra per year.

Rishi Sunak announced the change in the budget for 2021with the increase arrives around the time that the energy price ceiling is risingand households receive a municipal tax rebate to reduce the rising costs.

But what do we mean by the minimum wageand how is it different from the national wage? Here’s everything you need to know.

What is the minimum wage and the national wage?

While people often refer to the “minimum wage”, it is National minimum wage actually applies only to people over school dropout age, but under 23 years of age.

Anyone aged 23 or over now receives National Living Wage under a system launched earlier this year.

That National Life Wages was introduced in April 2016, but for the first five years only applied to persons aged 25 or over, with a separate minimum wage for 21- to 22-year-olds.

How the current UK minimum wage system works:

  • National Living Wage (persons 23 years or older): £ 8.91 per hour
  • Minimum wage for 21 to 22 year olds: £ 8.36 per hour
  • Minimum wage for 18 to 20 year olds: £ 6.56 per hour
  • Minimum wage for under 18s: £ 4.62 per hour
  • Apprentice minimum wage: £ 4.30 per hour

The minimum wage for apprentices is based on persons under 19 years of age or persons over 19 years of age, but in the first year of their apprenticeship.

If apprentices are over 19 years of age and have completed the first year of their apprenticeship, they are entitled to the minimum wage for their age group.

More about Spring declaration

How much will the UK minimum wage increase?

It has been confirmed in budget for 2021 that National Living Wage will increase to £ 9.50 from 1 April 2022 – equivalent to an extra £ 1,000 a year for a full-time employee.

The wage increase also means that the national minimum wage rises to £ 9.18, while the apprenticeship rate rises to £ 4.81 per hour.

Sir. Sunak said at the time: “This is a government that is on the side of the working people. This wage increase ensures that we get work to pay off and stays on track to achieve our goal of stopping low wages by the end of This Parliament. “

These recommendations came from the Low Pay Commission – an independent advisory committee – before they were accepted by the government and confirmed on October 25, 2021.

What is the right living wage?

In addition to the national living wage, there is also an unofficial and voluntary “real living wage”.

This is calculated by Livslønsfondena campaign organization, and is based directly on cost of living.

According to the fund, the “real” living wage is currently £ 9.90 an hour for workers across the UK and £ 11.05 in London, almost a pound above the mandatory National Living Wage.

About 9,000 employers are currently enrolling in the scheme, including Google, Nationwide, Aviva and the football clubs Chelsea and Everton.

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