The UK National Living Wage will go up today by the highest rate since it was first introduced, increasing by 4.9% to £8.21 per hour. The National Living Wage is the minimum pay per hour most workers aged 25 and over are entitled to by law.

According to the UK government, 1.8 million workers earning the National Living Wage will receive an additional £690 over the year from today.

The National Minimum Wage is also increasing. This includes £7.70 per hour for 21 to 24-year olds, providing an additional £580 over the year for full-time workers, and £6.15 for 18 to 20-year olds, providing full-time workers with an additional £455 over the year.

Taken together with changes to the National Living Wage, 2.1 million people will be receiving a pay increase from today, with workers in the retail and hospitality sectors due to benefit the most.

“Since the National Living Wage was announced in 2015, it has helped protect the lowest paid – increasing faster than inflation and average earnings,” Business Minister Kelly Tolhurst said. “Our minimum wage rates are among the highest in the world and, through our modern Industrial Strategy, we are determined to end low pay and workers get a fair day’s pay for a fair day’s work.”

The UK’s minimum wage is currently growing faster than other countries with similar or higher minimum wage, such as Belgium, France and Germany.

The government aims to end low pay and later this year will announce the independent Low Pay Commission’s remit after 2020. 

The Trade Union Congress said that minimum wage levels remain too low. It added that it wants all workers aged between 21 and 24 to receive the same as those aged 25 and over, and for them all to receive £10 an hour.

"Young workers are still getting a raw deal on pay. Their bills are not any cheaper, but they have to make ends meet with less. That is just not fair," TUC general secretary Frances O'Grady said.

Research conducted by the Living Wage Foundation shows that a worker on the new government minimum would earn an annual salary worth £1,540.50 a year less than the real Living Wage (a living wage calculated by the Living Wage Foundation), based on what employees and their families need to get by.

Katherine Chapman, Director of the Living Wage Foundation, also commented, “Today’s increase in the government minimum wage will provide a welcome boost to low pay workers. But around 6 million workers still earn less than the real Living Wage and struggle to keep their heads above water. Many are unable to afford even the basics like decent family meals, or a warm and safe home. Over 5,000 responsible employers have gone beyond the government minimum and committed to pay a real Living Wage. We now need to see more businesses step up a provide a wage that truly covers the cost of living.”