Millions of UK workers are poised for a significant pay increase this year, following the Autumn Budget announcement by Labour. Chancellor Rachel Reeves confirmed a rise in the National Living Wage and the National Minimum Wage last autumn, with the aim of promoting fairer wages.
The National Living Wage is a higher mandatory rate for those over 21, while the National Minimum Wage is the lowest legal hourly wage for workers. However, it’s crucial to highlight that not all job roles are entitled to this minimum pay – including an unexpected 15 roles.
It may be surprising to learn that company directors, university students on work placements, and even members of the Armed Forces are not guaranteed the basic amount. The Government also lists the following:
- Company directors
- Workers on a government employment programme, such as the Work Programme
- People working on a Jobcentre Plus Work trial for up to 6 weeks
- Self-employed people running their own business
- Share fishermen
- Workers on government pre-apprenticeships schemes
- People living and working in a religious community
- People who are volunteers or voluntary workers
- Members of the Armed Forces
- Family members of the employer living in the employer’s home
- Workers younger than school leaving age (usually 16)
- People shadowing others at work
- Prisoners
- People on the following European Union (EU) programmes: Leonardo da Vinci, Erasmus+, Comenius
- Higher and further education students on work experience or a work placement up to one year
The wage changes, set to be implemented on April 1, 2025, are anticipated to impact more than three million employees. Apprentices and those aged 16 to 17 will see the largest minimum pay increase from £6.40 to £7.55 an hour, worth 18%.
Eighteen to 20 year olds will also benefit from a record rate increase, with their minimum wage rising to £10 per hour, reports Bristol Live.
The final group includes those over 21, who will receive a 6.7% pay increase worth 77p, bringing the National Living Wage to £12.21 per hour – an extra £1,400 annually.
Following the announcement in October, Chancellor Rachel Reeves commented: “This Government promised a genuine living wage for working people. This pay boost for millions of workers is a significant step towards delivering on that promise.”
Deputy Prime Minister Angela Rayner also chimed in, stating: “A proper day’s work deserves a proper day’s pay. Our changes will see a pay boost that will help millions of lower earners to cover the essentials as well as providing the biggest increase for 1820-year-olds on record.”
Are you being underpaid?
The Government is urging Brits to utilise its minimum wage calculator to verify if they are receiving the correct pay. To use it, details such as age, pay frequency, working hours, wage amount and other factors need to be inputted.
Employees can also employ this tool to determine if their employer owes them back payments from the previous year. A separate calculator is available for employers who have concerns about potential underpayments.
Get all the latest and breaking news in Yorkshire by signing up to our newsletter here.
Get all the latest and breaking news in Leeds by signing up to our newsletter here.