Young workers earning the National Minimum Wage will receive a pay rise of 25p per hour, with around 500,000 people under the age of 25 expected to benefit.
From today (Saturday 1st October), the National Minimum Wage for workers aged 21-24 will be set at £6.95, the highest ever.
The increase is the largest since 2008, with the wage being more than average wage growth and inflation.
270,000 workers aged 21-24 and 210,000 workers under 21 are expected to benefit.
‘Today’s increase means our lowest paid workers will benefit from their largest pay rise since the recession’
The National Minimum Wage system breaks down as:
- The rate for those aged 16-17 years old will increase by 13p to £4 per hour.
- The rate for those aged 18-20 year olds will increase by 25p to £5.55 per hour.
- The rate for those aged 21-24 year olds will increase by 25p to £6.95 per hour.
The rise for young workers follows an increase for workers 25 years and older in April, to £7.20.
Business Secretary Greg Clark said: “The government promised to create an economy that works for all and today’s increase means our lowest paid workers will benefit from their largest pay rise since the recession.
‘Those working 35 hours a week will get a boost of up to £450 a year’
“This will make a real difference to hard-working people up and down the country and means for the vast majority of workers, the National Minimum Wage is at its highest level in real terms.”
Madeleine Green, a third year Zoology student, told Impact: “I think the rise is good. Young people work hard and it deserves to be rewarded.”
In real terms, those working 35 hours a week will get a boost of up to £450 a year.
Image: Peter Allen via Flickr