
The new minimum hourly rates will boost the pay packets of more than three million workers employed by shops, restaurants and other workplaces across the UK.
The Government will lay down legislation today that confirms a new National Living Wage of £12.21 per hour (up from £11.44).
Announced in last year’s Budget, the 6.7% increase to the National Living Wage will be worth £1,400 per year for an eligible full-time worker.
The National Minimum Wage for 18-20-year-olds is also set to increase by £1.40 to £10 per hour. This record increase means full-time younger workers will see their pay boosted by £2,500 per year.
According to a Government impact assessment, these reforms will put about £1.8bn into the pockets of workers over the next six years.

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Justin Madders, employment rights minister, said: “Economic growth only matters if working people are feeling the benefits. This will be a welcome pay bump for millions of workers, who in turn will spend more in the real economy boosting our high streets.
“Our Plan for Change is putting money back into people’s pockets and delivering better living standards across the country.”
Rachel Reeves, Chancellor of the Exchequer, said: “This Government promised a genuine living wage for working people that will support people with the cost of living, creating a workforce that is fit and ready to help us deliver number one mission to [grow] the economy. This pay boost for millions of workers is a significant step towards delivering on that promise.”
Minimum hourly rates explained
The National Living Wage applies to most workers, whereas the National Minimum Wage is the minimum amount an employer must pay per hour for all workers aged below 21.
The Government said this is the first time the National Living Wage has taken into account the cost of living and inflation, and marks the first step towards aligning the National Minimum Wage for 18-20-year-olds and National Living Wage to create a single adult wage rate.
The move will put an end to age-based wage discrimination, meaning employers can no longer be justified in paying younger workers less for doing the same job as their older colleagues.
The minimum hourly wage for an apprentice is also set to be boosted this year, with an 18-year-old apprentice seeing their minimum hourly pay increase by 18%, a pay increase from £6.40 to £7.55 per hour.
Paul Nowak, TUC’s general secretary, said: “This Government is delivering on its promise to make work pay. The increase in the National Minimum Wage will make a real difference to the lowest paid at a time when one in six are skipping meals to get by. And moving to end the outdated and unfair youth rates will give young workers a boost up and down the country.
“More money in working people’s pockets means more spend on our high streets – that’s good for workers and good for local economies. After workers in the UK have been through the biggest squeeze in living standards in 200 years, this boost to working people’s pay packets is badly needed.”