Minimum wage rates from April 2022 have now been announced.
Large minimum wage increase to boost low-paid workers’ incomes.
The National Living Wage will rise to £9.50 from 1 April 2022. This represents an increase of 59 pence or 6.6 per cent.
The low pay commission's recommendations set the minimum wage back on track to reach the government's target of two-thirds of median earnings by 2024.
The increases announced this week will support the wages and living standards of low-paid workers at a time when pay growth is robust across the economy. They come against a backdrop of strong GDP forecasts, employment, returning to pre-pandemic levels and businesses advertising record numbers of vacancies.
Alongside the National Living Wage (NWL) increase the Commission recommended significant rises in National Minimum Wage (NMW) rates for younger workers. The 21-22 year old rate will increase to £9.18, narrowing the gap with the NLW and leaving this age group on course to receive the full NLW by 2024. NMW rates for 18-20 and 16-17 year olds will increase in line with underlying wage growth, protecting earnings for younger workers while recognising their higher risk of unemployment. The minimum wage for apprentices will increase by 51p, bringing it in line with the 16-17 year old rate.
| Rate from April 2022 | Current rate (April 2021 to March 2022) | Increase |
National living wage | £9.50 | £8.91 | 6.6% |
21-22 Year old rate | £9.18 | £8.36 | 9.8% |
18-20 Year old rate | £6.83 | £6.56 | 4.1% |
16-17 Year old rate | £4.81 | £4.62 | 4.1% |
Apprentice Rate | £4.81 | £4.30 | 11.9% |
Accommodation Offset | £8.70 | £8.36 | 4.1% |
Low Pay Commission, 2021. Large minimum wage increase to boost low-paid workers’ incomes. London: GOV.UK, p.1.
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