Overview
- The National Living Wage, which kicks in Wednesday, rises to £12.71 an hour for eligible workers aged 21 and over.
- Rates for younger workers also climb, with 18 to 20 year olds moving to £10.85 and 16 to 17 year olds and apprentices to £8, part of a push to narrow age gaps.
- Around 2.7 million people are set to benefit, and a full‑time worker on the top rate working 40 hours a week should earn about £1,040 more a year.
- The Living Wage Foundation’s higher voluntary rates rise to £13.45 outside London and £14.80 in London, with accredited employers expected to apply them by May.
- Employers warn higher wage floors raise costs and could slow hiring, and the Resolution Foundation says the larger jump for 18 to 20 year olds may hurt youth job prospects.