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The National Minimum Wage rises

  • 02/10/2015
  • Author:MartinKitara

The new UK National Minimum Wage set to benefit an estimated 1.4 million workers

Money

The UK National Minimum Wage (NMW) was increased on 1 October and is set to benefit an estimated 1.4 million workers. The increase comes before the new mandatory National Living Wage for workers aged 25 years and above, set at £7.20 which is to be introduced in April 2016. 

According to the UK Department for Business, Innovation and Skills, the 3% increase in the adult rate is the biggest real increase since 2006 and moves the NMW closer to the average wage than ever before. The new rate means that a full time employee, working 40 hours will see the biggest cash increase in their annual pay packets since 2008.

The new National Minimum Wage rates have been increased as follows:

•    Adult rate increases by 20p to £6.70 per hour
•    18 to 20 year-olds rate increases by 17p to £5.30 per hour
•    16 to 17 year-olds rate increases by 8p to £3.87 per hour
•    Apprentice rate increases by 57p to £3.30 per hour

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Living on the minimum wages is still very difficult, according to Rhys Moore, Director of the Living Wage Foundation. He called upon responsible businesses to pay the UK Living Wage of £7.85 an hour and the London Living Wage of £9.15 per hour and said: “These rates are calculated independently and reflect the real cost of living. The Living Wage isn’t about luxuries but enabling people to more than just exist”

Turn2us welcomed the rise in the National Minimum Wage. The Charity said: “The rise in the National Minimum Wage is good news and will reduce the burden on those we help. However, in work poverty still remains a technical possibility by 2020. For those who are out of work and on low incomes it is set to become a very practical reality.

“While we many will benefit from the rise announced, it is vital that as a compassionate society we address the concerns of those who will not be so lucky such as those on zero hours contracts. 

“We will continue to work with together with charities and other organisations to make all the help available as accessible and straight forward as possible.”

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If you are struggling to make ends meet, use our Benefits Calculator to check your entitlement to welfare benefits, and our Grants Search to see if you are eligible for help from a charitable fund, based on your personal background, circumstances and needs. 

Our website contains resources on benefits, grants and managing money, face to face advice in your local area and a Find an Adviser tool to help you find national and local sources of further help. 

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