Politics

What is the National Living Wage in the UK and how much is the minimum wage for 16, 18 and 25-year-olds?


Chancellor Sajid Javid has used his speech at the Tory party conference to announce that the National Living Wage will increase over the next five years.

But what is it now and what will it increase to?

 Happy days - but only if your employer is part of the Real Living Wage scheme

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Happy days – but only if your employer is part of the Real Living Wage schemeCredit: Getty Images

What is the National Living Wage?

The National Living Wage is currently the amount of money all employees aged over 25 are legally entitled to.

The first National Minimum Wage was set in 1998 by the Labour government.

Before that, no official rate existed although trade unions battled hard to fight their workers’ corner.

The National Minimum Wage was re-branded to the National Living Wage in 2016.

An increase in the National Living Wage from £7.50 to £7.83 for those aged 25 and over came into effect on April 1 last year.

In April this year, the National Living Wage was increase by 38 pence-an-hour to £8.21.

What’s the latest change?

Chancellor Sajid Javid has announced that the National Living Wage will now increase to £10.50 by 2024.

The new rate will also apply to all workers over the age of 21, instead of only those over 25.

Javid confirmed the rise in his keynote speech on the second day of the Conservative Party conference in Manchester.

He said the policy would make the UK “the first major economy in the world to end low pay altogether”.

He added that he had reduced the age threshold to “reward the hard work of all millennials”.

 Philip Hammond confirmed the increase in the National Living Wage in the November Budget

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Philip Hammond confirmed the increase in the National Living Wage in the November BudgetCredit: PA:Press Association

What is the National Minimum Wage?

The National Minimum Wage is currently the amount workers under 25, but of school-leaving age, are entitled to.

However, the amount differs depending on age and whether the worker is on an apprenticeship scheme.

From April 2019 the rate for National Living Wage and National Minimum Wage is:

  • 25 and over: £8.21
  • 21-24: £7.70
  • 18-20: £6.15
  • Under 18: £4.35
  • Apprentice: £3.90

The national limits are legally binding.

Anyone who thinks they are not getting the National Living Wage or National Minimum Wage should complain to their employer in the first instance.

If this does not get anywhere, the next step is to take the complaint to HMRC who will investigate.

Which workers do not qualify for the National Minimum Wage or National Living Wage?

Those who are self-employed, voluntary workers, company directors and family members who live in the home of the employer and do household chores do not qualify for either rate.

There is no difference in pay for those that live in London compared to elsewhere.

The only discrepancy is for people working in agriculture or horticulture.

Workers already employed before October 1, 2013, are entitled to the pay set under their contract of employment.


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