National Minimum Wage Increase

The recent increase to the National Minimum Wage (NMW) took effect on the 1st October 2015, rising from £6.50 to £6.70 for those aged 21 and over. The development rate, (which covers workers aged 18-20 years) went up from £5.13 to £5.30. For 16-17 year olds the rate has increased 11p an hour to £3.87 and the apprentice rate has risen to £3.30 per hour from £2.73.

National Minimum Wage Increase

The government have also announced a new rate of £7.20 per hour, to be introduced from April 2016, for workers aged 25 and over. This is effectively an increase to the NMW but only for workers aged 25 and over.

Most people have welcomed this increase but some have pointed out that up to 2 million young workers below the age of 25 will miss out. Others have questioned why it has been referred to as a “National Living Wage” by the government, despite the existence of the Living Wage Foundation who have been calculating a Living Wage, based on the true costs of living, for a number of years.

The current Living Wage, according to the Living Wage Foundation, who conduct research with the Centre for Research in Social Policy, is £7.85 per hour outside London and £9.15 per hour in London. Both figures will be updated by the Living Wage Foundation in November 2015.

For more information about the Living Wage Foundation see the following link; or for information regarding the Centre for Research in Social Policy see;