In the budget last month, the Government announced that, from April 2016, a new national living wage of £7.20 an hour for the over 25s will be introduced. This will rise to over £9 an hour by 2020.
For the time being, every employee must be paid at least:
|Current rate (effective from 1 October 2014)||Future rate (effective from 1 October 2015)|
|Main (adult) rate (workers aged 21 and over)||£6.50 per hour||£6.70 per hour|
|Development rate (workers aged 18-20 inclusive)||£5.13 per hour||£5.30 per hour|
|Rate for workers aged 16-17 inclusive||£3.79 per hour||£3.87 per hour|
|Apprentice rate||£2.73 per hour||£3.30 per hour|
|Accommodation offset||£5.08 per day||£5.35 per day|
The Government is proposing to streamline the number of minimum wage rates and have a single minimum wage rate for apprentices and 16-17 year-olds. This would see an apprentices' wage rise from £2.73 to £3.79 an hour and potentially make apprenticeships a more financially attractive route for young people.