Increases in UK minimum wage rates, including a steep rise in the National Minimum Wage (NMW) for 18-20-year-olds, have been announced by the Government as part of its Autumn Budget.
The National Living Wage (NLW) hourly rate for over-21s will rise by 50p to £12.71 next April, with workers aged 18-20 seeing an 85p per hour rise to £10.85, representing an increase of 4.1% for the NLW and 8.5% for the NMW. Rates for under-18s and apprentices will increase by 45p to £8 an hour.
The increases follow hikes of 6.7% for over-21s and 16.3% rise for 18-20-year-olds respectively last year, when there was also a rise in employers’ National Insurance contributions.
The different rates of increase are part of a gradual process of alignment, as the government has stated that it wants to phase out the separate band for the 18-20s group and establish a single rate for all adults in time.
Jane Gratton, deputy director of public policy at the British Chambers of Commerce, commented on the increases by saying: “There’s a limit to how much additional cost employers can bear without something having to give.”
Also announced in the Budget, the 5p “temporary” cut in fuel duty on petrol and diesel has been extended until September 2026, after which time it will rise again over a six month period.
