National living and minimum wage to increase in April 2022

November 3, 2021

National living and minimum wage to increase in April 2022

The Government has announced that the national living wage paid to workers aged 23 and over will rise from £8.91/hr to £9.50/hr from 1st April 2022. This represents an increase of 59p, and an extra £1,000/year if you work full-time. The national minimum wage for workers aged under 23 and apprentices will also rise.

The changes were revealed by the Treasury today (25 October) and are expected to be officially announced by Chancellor Rishi Sunak during Wednesday's Budget on 27 October.

How minimum wage and national living wage rates will rise from April 2022

Here's how national living and minimum wage rates will change from 1 April 2022:

In 2022, the National Living Wage - which is the minimum wage for people aged 23 and over - stands at £9.50 an hour.

For people aged 21 to 22, the minimum wage is £9.18 an hour, while it stands at£6.83 an hour for 18 to 20-year-olds. Under-18s and apprentices have a minimum wage of £4.81.

 National living wage is different to the 'real living wage'

Introduced in July 2015 by the then Chancellor George Osborne, the compulsory national living wage is the lowest amount that can legally be paid to employees aged 23 or over. It is adjusted every April. The age at which workers become eligible for the national living wage was reduced in April this year, from 25 to 23, and is currently higher than the compulsory minimum wage, which is for those aged 22 and under.

The national living wage is different from the 'real living wage' though, which is the amount calculated by campaign group the Living Wage Foundation as the minimum pay workers and their families need to live. The 'real living wage' is currently £9.50/hr across the UK and £10.85/hr in London, for anyone aged over 18.

The Foundation is planning to release its real living wage for 2022 next month. It says there will be a "substantial gap" between its recommendations and next year's Government minimum wage.

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