Workers aged 21 to 24 earning the minimum wage will see their hourly wage rise by 25p an hour to £6.95.
Students aged between 18 and 24 have been awarded a 25p per hour pay rise as a following the recommendation of the Low Pay Commission, starting from 1 October. The rise in the National Minimum Wage follows the introduction of the £7.20 National Living Wage in April for those aged 25 and over. Hard working students reaching 35 hours per week (nearly full time) could see a £450 annual pay rise as a result of the change, £1.23 per day.
The minimum wage rise is the largest since the financial crash of 2008 and the resulting recession.
According to Business Secretary Greg Clark, “The government promised to create an economy that works for all and today’s increase means our lowest paid workers will benefit from their largest pay rise since the recession.”
Mr Clark assured those who will receive that the wage increase, “will make a real difference to hard-working people.”
At current prices, the increase would buy approximately one loaf of bread and half a pint of milk.
He was also was keen to assure those who feel their employer may not have adjusted their pay accordingly, “Everyone entitled to the national minimum or living wage has to receive it. Employers who fail to pay are found and punished, as well as being publically named and shamed.”
Workers are reminded to check their pay slips are updated to reflect new rates.
HMRC’s enforcement budget was increased from £13 million to £20 million this April, increasing the number of compliance officers available to investigate complaints over the National Minimum Wage.
By Duncan Chisholm