Each year the government reviews the minimum wage and in April each year they are updated.

This year there will be a rise which will increase over 1 million people who are on the minimum wage currently.

The House of Commons Library states that the rates are provided in regulations made by the secretary of State with parliamentary approval and is based on the recommendation of the Low Pay Commission (LPC).

The new Minimum wages

For those who are over 21 the minimum wage will rise to £11.44 which is a £1.02 increase.

For 18-20 year old the new minimum will be set to £8.60 which is a rise of £1.11.

For 16-17 years old their new rate will be £6.40 which is a rise of £1.12.

The rate for apprentices will be £6.40 which is a rise of £1.12.

 

What is the average living wage needed in the UK?

The UK Government update the minimum wage rates each April to suit the economic situation and inflation at the time. However, does this allow people a liveable wage and is there a gap?

Statista discovered that the average voluntary living wage is £12 across the UK, in London this rises to £13.15.

In 2023 the Joseph Rowntree Foundation found that of the 14.4 million people roughly living in poverty, 8.1 million of these were working adults.

Their date found that for a couple with two children if they were living in poverty they would need an extra of £6,200 a year to reach the poverty line.

Despite the minimum wage increasing there is still a worry as inflation is not slowing quick enough and rental prices are rising faster than the growth of wages.

How does this compare to other countries?

The parliament reports their comparison with 25 other OECD countries and the UK were reported with the 8th highest adult minimum wage in 2022. This takes into account the varied cost of living in each country.