Tag: National Minimum Wage

National Living Wage increases to £12.71 per hour

New minimum wage rates come into force from 1 April, following Low Pay Commission recommendations

Increased rates of the National Minimum Wage, including the National Living wage came into force from 1 April 2026. These rates bring into effect recommendations made by the Low Pay Commission last autumn.

The new rates are set out in the table below:

NMW Rate from April 2026Annual increase (£)Annual increase (per cent)
National Living Wage (21 and over)£12.71£0.504.1
18-20 Year Old Rate£10.85£0.858.5
16-17 Year Old Rate£8.00£0.456.0
Apprentice Rate£8.00£0.456.0
Accommodation Offset£11.10£0.444.1

Baroness Philippa Stroud, Chair of the Low Pay Commission, said: “The recommendations we made last autumn sought to balance the need to protect the economy and labour market, whilst providing a real-terms increase for the lowest-paid members of society.

“A lot has changed since we gave our advice to the Government last autumn, and we are now beginning to gather evidence for recommendations later this year.

“The current economic uncertainty makes it essential that the Commission hears from those affected by the minimum wage and builds consensus for evidence-based recommendations.”

To mark the uprating, the Low Pay Commission has published a report looking at the immediate impacts of the new rates. It has also published a consultation to inform its recommendations on future minimum wage rates.

Chancellor expected to further protect those on the National Minimum Wage at Budget

  • Government to crackdown on those not paying employees National Minimum Wage
  • Set for more regular public naming and shaming employers breaking the rules
  • This comes after Government introduces the biggest upgrade to workers’ rights and enforcement for a generation

The Chancellor is expected to announce reforms to protect those on the National Minimum Wage, ensuring that no employer can exploit vulnerable workers.

As part of these plans, the Government will introduce more regular naming and shaming rounds – publicly naming employers found to have broken minimum wage rules and clearing the case backlog inherited by the previous government.

These changes will mean businesses breaking the rules will have no place to hide, and those on the minimum wage will be further protected by this Government.

This comes as the Chancellor is set to deliver a Budget that makes the fair choices to deliver on the country’s priorities to cut NHS waiting lists, cut national debt and cut the cost of living.

Last month 500 employers failed to pay the minimum wage to around 42,000 of the country’s lowest-paid workers. Big name brands were among those forced to reimburse employees and faced fines totalling £10.2 million for breaking the rules.

The Government is sending a clear message that it will not tolerate those who short-change their workers, regardless of their size or sector.

This action comes as the Government introduces the biggest upgrade to workers’ rights and enforcement for a generation through its Plan to Make Work Pay, which is set to directly benefit around 15 million workers – half of all UK employees.

An HMT source said: “This Government is cracking down on unscrupulous employers to protect the country’s lowest paid workers and ensure fair pay for hard work.

“We are sending a clear message – those who short-change their staff will not be allowed to hide.”

Over £220,000 repaid to workers in Scotland as Government cracks down on employers underpaying their staff

  • From Strathaven to the Isle of Skye, 46 employers fined over £400,000 for failing to pay the National Minimum Wage.
  • Across the UK, around £6 million put back into the pockets of working people as Government delivers the biggest overhaul of workers’ rights in a generation, as part of its Plan for Change. 
  • Enforcement of workers’ rights is set to be beefed up through new Fair Work Agency which will shield workers from employers who flout the law. 

46 employers who failed to pay the minimum wage have been named (Friday 17 October) as the Government takes direct action to Make Work Pay.  

Around 700 workers in Scotland have been repaid by their employers, including well-known high street brands, with employers receiving fines totalling over £400,000 for breaking the rules. 

This strong enforcement doesn’t just protect workers; it protects those businesses who do right by their staff from being undercut. By taking swift action against these employers, the Government is sending a clear message that it will not tolerate those who short-change their workers, regardless of their size or sector. 

Employment Rights Minister Kate Dearden said: “This government is taking direct action to ensure workers get every penny they’ve earned, and to put an end to bad businesses undercutting good ones.  

“We are proud to have delivered a strong minimum wage and enforcing it thoroughly is crucial in our mission to put pounds back in your pocket.  

“I know this news will be welcomed by brilliant businesses across the country, those who know that happy well-paid staff are at the heart of building a successful company.  

“With our new Fair Work Agency and the coming Employment Rights Bill, this government is keeping our promise to Britain to make work pay again” 

Scotland Office Minister Kirsty McNeill said: “Every Scottish worker deserves the pay they are entitled to. Our government is delivering real change for working people  – boosting the minimum wage for 200,000 of Scotland’s lowest-paid workers and taking action against employers who break the rules.  

“We are bringing in the biggest upgrade to workers rights in a generation and we will not tolerate employers who short-change their staff.” 

This action comes as the Government introduces the biggest upgrade to workers’ rights and enforcement for a generation through its Plan to Make Work Pay, which is set to directly benefit around 15 million, or half of all UK, workers.  

As well as ensuring hard work is properly rewarded with fair treatment and decent pay, from April 2026 the Employment Rights Bill will also establish a new Fair Work Agency with more powers to tackle employers underpaying workers and failing to pay holiday and sick pay. 

Today’s announcement follows significant increases to National Minimum Wage rates earlier this year. From April, millions got a pay rise with those on the National Living Wage who work full-time seeing their families supported by an extra £1,400 per year.  

·                  If workers suspect they are being underpaid, they can visit gov.uk/checkyourpay to find out more about what they can do. 

·                  Workers can also call the Acas helpline on 0300 123 1100 or visit their website for free, impartial and confidential advice or complain to HMRC at Pay and work rights helpline and complaints 

·                  The minimum wage law applies to all parts of the UK. 

·                  Employers should always carry out the necessary checks – see the guidance: Calculating the Minimum Wage 

·                  HMRC consider all complaints from workers, so workers are being reminded to check their pay with advice available through the Check your pay website 

·                  National Living Wage and National Minimum wage rates: 

 2024 rate 2025 rate 
National Living Wage (21 and over) £11.44 £12.21 
18 to 20 £8.60 £10.00 
Under 18 £6.40 £7.55 
Apprentice £6.40 £7.55 

Educational bulletin 

We are committed to educating employers and have released an educational bulletin today to increase awareness of National Minimum Wage legislation and inform companies on how to make sure they’re paying workers correctly. 

List of employers: 

Crieff Hydro Limited, Crieff, PH7, failed to pay £33,992.50 to 131 workers. 
J. Puddleducks Childcare Limited , Aberdeen, AB21, failed to pay £30,057.05 to 62 workers. 
Mr James D Oakden & Mrs Frances I Hay Smith, Cupar, KY14, failed to pay £28,379.95 to 7 workers. 
Stena Line PTE Ltd, Glasgow, G3, failed to pay £20,585.44 to 11 workers. 
Seada Uaine Ltd, Isle of Jura, PA60, failed to pay £11,190.12 to 18 workers. 
Little Me Nursery Limited, Glasgow, G20, failed to pay £7,841.61 to 15 workers. 
Windscreen Services (argyll) Ltd, Oban, PA34, failed to pay £7,191.37 to 3 workers. 
David Bryson & Sons Limited, Prestwick, KA9, failed to pay £6,766.94 to 25 workers. 
Rompers Private Nursery Limited, Montrose, DD10, failed to pay £6,311.47 to 5 workers. 
Peebles Hydro Limited, Peebles, EH45, failed to pay £4,328.91 to 28 workers. 
J S K Retail (GLW) Ltd, Alloa, FK10, failed to pay £4,007.92 to 1 worker. 
K & P Cooper Ltd, Annan, DG12, failed to pay £3,920.18 to 1 worker. 
Ballathie House Hotel Company Limited, Stanley, PH1, failed to pay £3,445.15 to 33 workers. 
Wright Hardware Limited, Prestwick, KA9, failed to pay £3,279.84 to 77 workers. 
Mr James D Oakden & Mrs Sarah Oakden, Cupar, KY14, failed to pay £3,191.72 to 2 workers. 
Driveline Holdings Limited, Grangemouth, FK3, failed to pay £3,055.00 to 3 workers. 
Mackay Hotel Company Ltd, Wick, KW1, failed to pay £3,051.03 to 3 workers. 
The Daisychain Nursery Kirkcaldy Ltd., Kirkcaldy, KY1, failed to pay £2,825.67 to 14 workers. 
ABY Autos Ltd, Hamilton, ML3, failed to pay £2,630.57 to 1 worker. 
Ms Anne Myles, Miss Stacey Myles & Miss Teri Devine, Dundee, DD4, failed to pay £2,511.75 to 5 workers. 
Sinclair Nursery Limited, Glasgow, G42, failed to pay £2,501.34 to 2 workers. 
Gemmell Hammond Limited, Arbroath, DD11, failed to pay £2,422.76 to 1 worker. 
Spring Engineering Services Limited, Livingston, EH54, failed to pay £2,222.96 to 3 workers. 
Cinemaattic Productions CIC, Edinburgh, EH8, failed to pay £2,029.46 to 2 workers. 
Mr Edward Phillips, Coatbridge, ML5, failed to pay £2,019.00 to 2 workers. 
Kingswellies Nursery Limited, Aberdeen, AB15, failed to pay £1,928.05 to 4 workers. 
MacPhails Coaches Limited, Shotts, ML7, failed to pay £1,879.85 to 12 workers. 
Thistle Alterations Ltd, Aberdeen, AB10, failed to pay £1,874.47 to 2 workers. 
Seaforth Hotels Limited, Helensburgh, G84, failed to pay £1,807.14 to 5 workers. 
MJM Builders Limited, Glasgow, G68, failed to pay £1,773.07 to 1 worker. 
The Three Chimneys (Scotland) Limited, Isle of Skye, IV55, failed to pay £1,527.83 to 7 workers. 
Mrs Anna K Bednarz, Isle Of Skye, IV49, failed to pay £1,520.00 to 1 worker. 
Enchanted Forest Nursery Limited , Bishopton, PA7, failed to pay £1,482.59 to 4 workers. 
Crinan Hotel (Argyll) Limited (The), Crinan, PA31, failed to pay £1,317.86 to 24 workers. 
Bar Aldo Limited, Alloa, FK10, failed to pay £1,268.63 to 11 workers. 
Abby Cleaning (Scotland) Ltd, Glasgow, G22, failed to pay £1,002.80 to 49 workers. 
Orchard Grove Nurseries Limited, Paisley, PA1, failed to pay £834.33 to 1 worker. 
Pace & Bene Limited, Kilwinning, KA13, failed to pay £814.59 to 1 worker. 
Crofthead Holiday Park Limited, Ayr, KA6, failed to pay £763.43 to 1 worker. 
Mr Alexander Stuart, Mrs Freda Thomson Stuart, Mrs Emma Jane Stuart, Mr Grant Reid, Dunning, PH2, failed to pay £741.43 to 1 worker. 
Event Evolution Limited, Port Glasgow, PA14, failed to pay £686.67 to 4 workers. 
The Rissco Collection Limited, Strathaven, ML10, failed to pay £680.25 to 25 workers. 
Ubiquitous Chip Ltd, Dunbar, EH42, failed to pay £675.13 to 47 workers. 
Mackie’s Limited, Rothienorman, AB51, failed to pay £568.13 to 2 workers. 
New Inn Hotel Limited, Ellon, AB41, failed to pay £538.71 to 15 workers. 
Mazaj Dundee Limited, Dundee, DD1, failed to pay £529.65 to 16 workers. 

£6 million repaid to workers as UK Government cracks down on employers underpaying their staff

Nearly 500 employers fined over £10 million for failing to pay the National Minimum Wage

  • Nearly 500 employers fined over £10 million for failing to pay the National Minimum Wage.
  • £6 million put back into the pockets of working people as Government delivers the biggest overhaul of workers’ rights in a generation, as part of its Plan for Change.
  • Enforcement of workers’ rights is set to be beefed up through new Fair Work Agency which will shield workers from employers who flout the law.

Almost 500 employers who failed to pay the minimum wage have been named today (Friday 17 October) as the Government takes direct action to Make Work Pay.

Around 42,000 workers have been repaid by their employers, including well-known high street brands, with employers receiving fines totalling £10.2 million for breaking the rules.

This strong enforcement doesn’t just protect workers; it protects those businesses who do right by their staff from being undercut. By taking swift action against these employers, the Government is sending a clear message that it will not tolerate those who short-change their workers, regardless of their size or sector.

Business Secretary Peter Kyle said: “Every worker deserves a fair day’s pay for a fair day’s work, and this government will not tolerate rogue employers who short-change their staff.

“I know that no employer wants to end up on one of these lists. But our Plan to Make Work Pay cracks down on those not playing by the rules.

“This ensures a level playing field where all businesses pay what they owe whilst workers receive the boost to their living standards they deserve.”

This action comes as the Government introduces the biggest upgrade to workers’ rights and enforcement for a generation through its Plan to Make Work Pay, which is set to directly benefit around 15 million, or half of all UK, workers.

As well as ensuring hard work is properly rewarded with fair treatment and decent pay, from April 2026 the Employment Rights Bill will also establish a new Fair Work Agency with more powers to tackle employers underpaying workers and failing to pay holiday and sick pay.

Employment Rights Minister Kate Dearden said: “This government is taking direct action to ensure workers get every penny they’ve earned, and to put an end to bad businesses undercutting good ones.

“We are proud to have delivered a strong minimum wage and enforcing it thoroughly is crucial in our mission to put pounds back in your pocket.

“I know this news will be welcomed by brilliant businesses across the country, those who know that happy well-paid staff are at the heart of building a successful company.

“With our new Fair Work Agency and the coming Employment Rights Bill, this government is keeping our promise to Britain to make work pay again.”

Today’s announcement follows significant increases to National Minimum Wage rates earlier this year. From April, millions got a pay rise with those on the National Living Wage who work full-time seeing their families supported by an extra £1,400 per year.

Baroness Philippa Stroud, Low Pay Commission Chair, said: “We are pleased the Government is keeping up momentum with the publication of today’s naming round.

“It is vital that businesses understand the mistakes which can lead to underpayment, and that workers know where to go to enforce their rights.

“Continuing to raise the profile of the NMW enforcement system will give the Fair Work Agency a solid foundation when it comes into operation next year.”

Niall Mackenzie, Acas Chief Executive, said: “Not only is it important for employers to pay the correct minimum wage rates, it is also the law.

“Failing to do so can result in grievances and potentially legal action, including costly employment tribunals, as well as being named and shamed.

“Acas has advice on how employers can ensure they calculate the correct rate to pay their workers and what employees should do if they think they are not being paid the correct amount.”

  • If workers suspect they are being underpaid, they can visit gov.uk/checkyourpay to find out more about what they can do.
  • Workers visit the Acas website for free, impartial and confidential advice or complain to HM Revenue and Customs (HMRC) at Pay and work rights helpline and complaints
  • The minimum wage law applies to all parts of the UK.
  • Employers should always carry out the necessary checks – see the guidance: Calculating the Minimum Wage
  • HMRC consider all complaints from workers, so workers are being reminded to check their pay with advice available through the Check your pay website
  • National Living Wage and National Minimum wage rates:
2024 rate2025 rate
National Living Wage (21 and over)£11.44£12.21
18 to 20£8.60£10.00
Under 18£6.40£7.55
Apprentice£6.40£7.55

UK Government moves to end unfair pay and discriminatory age bands

The Government’s manifesto commitment to deliver a genuine living wage for working people took a step closer today as it set out new considerations for the Low Pay Commission when recommending next year’s National Living Wage and National Minimum Wage.

  • Discriminatory age bands to be removed as new Low Pay Commission remit delivers progress towards a single wage rate for adults.
  • Government places cost of living at the heart of the remit a year on from its first inclusion, meaning more money is being put into the pockets of hardworking people – delivering the Plan for Change.
  • Low Pay Commission to continue longstanding approach of assessing the impact of wage reforms on different sectors, ensuring recommendations support both economic growth and fair pay.

The Westminster Government’s manifesto commitment to deliver a genuine living wage for working people took a step closer today (5 August) as it set out new considerations for the Low Pay Commission (LPC) when recommending next year’s National Living Wage and National Minimum Wage.

Around 3 million workers benefitted from last year’s decision to include the cost of living in the LPC’s remit for the first time. This led to a record cash increase in the Minimum Wage for apprentices and those under 18, and a £1,400 annual boost for full-time workers on the National Living Wage from April.

Higher wages for the lowest-paid workers not only provide greater financial security for families but also mean more money in the pockets of working people to spend on the things they need – supporting businesses and driving economic growth across the country as part of the Plan for Change.

With younger workers being held back by discriminatory age bands, the updated LPC remit will drive forward the Government’s commitment to delivering a single adult pay band.

The LPC will consult with employers, trade unions and workers on narrowing the gap between the 18–20-year-old rate of the National Minimum Wage and the National Living Wage and will put forward recommendations on achieving a single adult rate in the years ahead.

The remit will also ensure that the LPC continues to actively consider the cost of living in its recommendations for National Living Wage rates to apply from April 2026.

Business Secretary Jonathan Reynolds said: “Low pay drags down living standards for our workers and in turn hurts our high streets and local businesses.

“This Government’s Plan for Change will put money back in people’s pockets, with this new remit marking the next step in considering how we ensure a fair deal for our lowest paid workers while maintaining a competitive economy that boosts businesses and their employees alike.”

Deputy Prime Minister Angela Rayner said: “We promised to make low pay a thing of the past, and deliver a wage people can live on, and that is exactly what this government is determined to deliver.

“We have already taken bold action to Make Work Pay with more than 3 million workers seeing a huge boost in their pay following our increase to National Minimum and Living Wage.

“This remit is the next milestone in our plan to get more money in working people’s pockets, raise living standards in every part of the UK, and get our economy growing.”

Chancellor of the Exchequer Rachel Reeves said: “We are delivering on our promise to make sure every worker receives a fair wage.

“Fair pay which supports working families is integral to our Plan for Change, because when working people are properly rewarded with more money in their pockets, businesses thrive and our entire economy benefits.

“To ensure the right balance is struck between the needs of workers, business affordability, and the wider economy, the LPC is being asked to consult on several issues before recommending the new rates.”

Baroness Philippa Stroud, Chair of the LPC, said: “We are pleased to receive our remit from the Government. Already, since the beginning of the year, we have spent significant time speaking with workers and employers, to understand the pressures in the economy and the effects of the most recent increases in the minimum wage. We have held a successful call for evidence and received detailed submissions from all sides.

“Our recommendations on the minimum wage are always finely balanced. More than ever, it is important that we draw on first-hand evidence from those affected by our decisions.

“I look forward to working with the rest of the Commission over the autumn to reach a shared view on this evidence and deliver our advice to the Government in October”

TUC General Secretary, Paul Nowak said: “Boosting the minimum wage isn’t just good for workers – it’s good for business too. When low-paid workers have more money in their pockets they spend it locally – supporting shops, cafés and high streets. 

“That’s why the government is right to set out its ambition to raise the floor of the minimum wage and end the outdated and unfair youth rates. 

“The minimum wage has been one of the big success stories of the last 25 years – lifting pay at the bottom and proving the doom-and-gloom merchants wrong. But it’s important that it keep rising so that it better reflects what it actually costs to get by in Britain today.

“A bolder, more ambitious minimum wage isn’t a risk. It’s the next step in building a fairer, stronger economy where hard work is properly rewarded.”

Pay day boost for thousands of Scottish workers

National Minimum Wage rise hits payslips

 ·                National Minimum Wage and National Living Wage increase puts more money in the pockets of 220,000 of the lowest paid workers in Scotland. 

·                Real terms pay rise will boost wages by £1,400 per year for an eligible full-time worker, boosting living standards and kickstarting growth as part of the Plan for Change.  

·                Visit Check Your Pay to make sure you don’t miss out.  

Up to 220,000 workers in Scotland have started to receive boosted payslips as workers begin to see the benefits of the new National Living Wage and National Minimum Wage rates taking effect.  

The changes will help provide families with better financial stability and living standards, delivering real terms pay increase of £1,400 per year for eligible full-time workers, supporting the Government’s plan to kickstart growth as part of the Plan for Change.  

This uplift delivers better financial security for working people and allows for further workers to potentially benefit from positive spill-over impacts including possible wage increases for those already earning more than the legal minimum. 

Employment Rights Minister Justin Madders said: “Workers across the country are beginning to receive the much-needed boost to their pay slips, as our Plan for Change is putting more money into their pockets.  

“By ensuring a hard day’s work is rewarded with a fair day’s pay, we’re raising living standards millions of families and ensuring that everyone is a part of this government’s mission to deliver economic growth to every part of the UK.  

“If you haven’t already, check your pay to ensure you aren’t missing out on a well-deserved pay rise for work done from 1st April.”    

To ensure workers were fairly compensated, for the first time this Government instructed the Low Pay Commission, the body which recommends the wage rates, to include the cost of living and inflation in its assessment.   

On top of this, the Employment Rights Bill, a key pillar in the Plan to Make Work Pay, will release an additional £600 a year to some of the lowest paid workers. This will ensure that these workers get receive an uplift to wages that delivers better quality of life.   

Workers in Scotland have earned this pay rise and they need to make sure they get it. Visit gov.uk/checkyourpay to check if you are eligible.  

The full increases from 1 April this year were:  

o        National Living Wage (21+) has increased 6.7%, from £11.44 to £12.21 per hour  

o        National Minimum Wage (18-20) has a record increase of 16.2%, from £8.60 to £10 per hour  

o        National Minimum Wage (under 18) has increased 18%, to £7.55 per hour  

o        Apprentice Rate has the largest increase of 18%, from £6.40 to £7.55 per hour  

o        Accommodation Offset of £10.66 per day  

·       The Accommodation Offset is the maximum daily amount which an employer can charge without it amounting to a reduction of pay for National Minimum Wage purposes.  

·       If someone is concerned that they’re not being paid the correct wage, they should speak to their employer. If the problem is not resolved, they can contact Acas (the Advisory, Conciliation and Arbitration Service) by phoning 0300 123 1122, or complain to HMRC in confidence using the link www.gov.uk/minimum-wage-complaint. HMRC looks into every single complaint.  

·       You can find out more about the minimum wage, and whether you’re receiving what you’re entitled to:  

o        Check your pay – Check your pay  

·       You can report possible underpayment of the National Minimum Wage to the ACAS Helpline and also online to HM Revenue and Customs (HMRC):  

o        https://www.gov.uk/pay-and-work-rights  

o        https://www.gov.uk/government/publications/pay-and-work-rights-complaints  

Budget pay rise for millions of low paid workers

  • Chancellor announces pay rise for over 3 million workers next year, as National Living Wage rises by 6.7% 
  • Pay boost worth £1,400 a year for an eligible full-time worker – a significant move towards delivering a genuine living wage.  
  • 18-20 National Minimum Wage will rise by £1.40 per hour – the largest increase on record – and marks first step towards a single adult rate.  

Over 3 million workers will receive a pay boost after the Chancellor confirmed the National Living Wage will increase from £11.44 to £12.21 an hour from April 2025.  

The 6.7% increase – which is worth £1,400 a year for an eligible full-time worker – is a significant step towards delivering the manifesto commitment to make sure the minimum wage is a genuine living wage.  

The National Minimum Wage for 18 to 20-year-olds will also rise from £8.60 to £10.00 an hour – the largest increase in the rate on record. This £1.40 increase will mean full-time younger workers eligible for the rate will see their pay boosted by £2,500 next year. This marks the first step towards aligning the National Minimum Wage and National Living Wage to create a single adult wage rate, which would take place over time. 

The move comes ahead of today’s Budget which will ‘fix the foundations’ to deliver change by fixing the NHS and rebuilding Britain, while ensuring working people don’t face higher taxes in their payslips. 

It builds on the commitment to be a pro-business, pro-worker, pro-growth Government – delivering a key plank of the Plan to Make Work Pay, which is already set to boost the pockets of the lowest-paid workers by up to £600 a year through the Employment Rights Bill.  

The plan will boost productivity, creating a workforce that is fit and ready to help us deliver our first mission to kickstart economic growth – with good jobs and growth in every part of the country making everyone, not just a few, better off. 

Chancellor of the Exchequer Rachel Reeves said:  “This Government promised a genuine living wage for working people.

“This pay boost for millions of workers is a significant step towards delivering on that promise.”  

Business Secretary, Jonathan Reynolds said: “Good work and fair wages are in the interest of British business as much as British workers. 

“This government is changing people’s lives for the better because we know that investing in the workforce leads to better productivity, better resilience and ultimately a stronger economy primed for growth.” 

Deputy Prime Minister, Angela Rayner said: ““A proper day’s work deserves a proper day’s pay. 

“Our changes will see a pay boost that will help millions of lower earners to cover the essentials as well as providing the biggest increase for 18–20-year-olds on record.” 

The minimum hourly wage for an apprentice is also boosted next year, with an 18-year-old apprentice in an industry like construction seeing their minimum hourly pay increase by 18.0%, a pay bump from £6.40 to £7.55 an hour.     

These increases will mean 3.5 million workers will receive a pay rise this year in total. They confirm the Low Pay Commission’s recommendations, whose advisory remit was overhauled by ministers in July to consider the cost of living.  

Ethics Director at Lush Cosmetics, Hilary Jones said: ““Lush staff making and selling our products are crucial to our success, so we commit to the Living Wage Foundation’s independently calculated real living wage rates each year to feel confident our rates of pay are fair and that our staff can afford what they need to thrive, not just survive.

“In these tough times where the cost of living continues to rise, it is great to see the Government increase minimum wage closer to these calculations to support the hardest working and most vulnerable workers across the UK.” 

Chair of the Low Pay Commission, Baroness Philippa Stroud said:  “The Government have been clear about their ambitions for the National Minimum Wage and its importance in supporting workers’ living standards.

“At the same time, employers have had to deal with the adult rate rising over 20 per cent in two years, and the challenges that has created alongside other pressures to their cost base.  

“It is our job to balance these considerations, ensuring the NLW provides a fair wage for the lowest-paid workers while taking account of economic factors. These rates secure a real-terms pay increase for the lowest-paid workers. Young workers will see substantial increases in their pay floor, making up some of the ground lost against the adult rate over time.” 

Good news for low paid workers, then. but some businesses – small businesses remain the bedrock of the UK economy – point out that it’s not the government that will be paying the pay rises, it’s them.

Coming on top of the likely increase in employers National Insurance contributions likely to be announced today they say that these additional costs could force some small businesses, working on small profit margins, to close.

TUC: It’s time to apply the lessons of the minimum wage

Sunday 1st April marked the 25th anniversary of the UK getting a minimum wage (writes TUC General Secretary PAUL NOWAK).

Nowadays when we think of the national minimum wage (NMW), we think of what is roundly accepted as one of the great policy successes of our time. But we shouldn’t kid ourselves that there was unanimity about the need to raise wages.  

Britain was full of employers and employers’ organisations predicting the minimum wage would cause mass unemployment and economic ruin.

The CBI warned a NMW “could result in rising prices, business closures and unemployment”. That it would “undermine flexibility and was a poor way to tackle poverty”. They wanted all new employees to be exempted from the minimum wage for the first six months! 1

They were wrong!

The minimum wage started off at £3.60. With no loss of jobs, and no economic meltdown. And in recent years, it’s gone up substantially. And it’s done so with no negative impact on jobs.

History proved all those doomsday warnings emphatically wrong. And I think there are lessons there for all of us. So here’s three: 

First: the NMW was a bold policy and we need to be equally bold for its future. 

The TUC is clear, we now need to set the bar higher. That means ministers should set a bolder Low Pay Commission remit:

  • A target of 75 per cent of median pay. 
  • Getting us faster towards a £15 an hour minimum wage for all. 
  • Raising the pay of millions 
  • Making the minimum wage a real Living Wage. 

Second: sometimes we have to face down those whose instinctive reaction is to say no to measures that improve the lives of working people.  

This is vital if we are going to deliver a much-needed new deal for working people in this country. 

  • 1 in 9 workers are in insecure work. 
  • Record numbers of young people on zero hours contracts. 
  • Seventy per cent of the kids who live in poverty have working parents. 

The New Deal is the right thing to do. Not just morally, but economically. It will establish a level playing field. Stop decent employers from being undercut by the cowboys. And make sure that everyone has a secure job they can build a life on. 

Just like the minimum wage, good employers have nothing to fear from the New Deal. But that hasn’t stopped some employers organisations’ warning of an economic apocalypse if Labour’s New Deal was made law.  And the arguments are exactly the same as they were 25 years ago. It will cost jobs. Put employers out of business. Reduce flexibility. 

The then British Hospitality Association said back in 1997 that the NMW would destroy 32,000 jobs in the industry2 . Spoiler alert: it didn’t!

They were wrong then, and they are wrong now. That’s why Labour should resist the out of touch, out of date siren voices from the 90s. Now is the time to forge a new political consensus on tackling the scourge of insecure work and deliver the New Deal in full. 

Third and final lesson. 

The NMW has succeeded because it has been underpinned by what might be unfashionably called social dialogue.  Employers, unions, supported by independent academics, working with government to deliver a minimum wage. We could do with more of that approach today.

Our so-called flexible labour market has failed far too many people. It’s led to massive rewards at the top and stagnant wages for everyone else. Unleashed epic insecurity and in-work poverty. And actively undermined our productivity. 

So it’s time for a new approach. 

Time to apply the lessons of the minimum wage. Time for the New Deal for workers that Britain needs. 

‘Check your pay’ call to people in Christmas jobs

Seasonal staff should check their pay to make sure they are being paid correctly

Festive workers who may be missing out on the National Minimum Wage or National Living Wage are being urged to check their pay.

Seasonal staff and students on short-term contracts over the Christmas period, including those working in shops, hotels, Christmas markets, garden centres, restaurants and warehouses, are legally entitled to the same minimum rates as other workers.

HM Revenue and Customs (HMRC) is reminding all workers to check their hourly rate of pay – in particular, looking out for any unpaid working time, such as time spent opening and closing a shop, training, picking up extra shifts and working longer hours. Deductions, for things like uniforms or tools, can also reduce pay rates.

In the 2022 to 2023 tax year, HMRC identified wage arrears of £13.7 million due to more than 108,000 underpaid UK workers.

Marc Gill, HMRC’s Director Individuals and Small Business Compliance, said: “We want to make sure that all workers, including seasonal staff and students, are being paid what they are due this festive period, which is why we are reminding everyone to check their pay.

“People should check their hourly rate and look out for any deductions or unpaid working time. It could take them below the minimum wage.

“HMRC looks into every minimum wage complaint, so if you think you are being short-changed you should get in touch. Don’t lose out – report it.”

The National Minimum Wage hourly rates are currently:

  • £10.42 – Age 23 and over (National Living Wage)
  • £10.18 – Age 21 to 22
  • £7.49 – Age 18 to 20
  • £5.28 – Age under 18
  • £5.28 – Apprentice

Anyone not being paid what they are entitled to, or people concerned that someone they know may not be getting paid correctly, can report it online at GOV.UK. It is an easy process that takes around 10 minutes and reports can be made after the employment has ended.

To speak with someone, raise a concern or get further information, people can also phone the Acas Pay and Work Rights helpline on 0300 123 1100 for confidential, free advice (Monday to Friday, 8am to 6pm). In Northern Ireland contact the Labour Relations Agency.

Employers can access support at any time to ensure they are paying their workers correctly:

They can also contact the Acas helpline for advice.

For further information about the National Minimum Wage visit GOV.UK at:

And the Acas website.   

Pay uplift promise for both health and social care and childcare workers

Scottish Government makes £12 an hour commitment

Private and voluntary sector staff working in Adult Social Care (ASC), Children’s Services (CS) and those who deliver funded Early Learning and Childcare (ELC) will receive at least £12 an hour under a new pledge made by the First Minister.

This uplift, announced in the First Minister’s first Programme for Government, will mean an increase of more than £2,000 a year for some staff in April 2024.

The £12 minimum pay rate represents an increase of 10.1% from the £10.90 minimum rate that was introduced in April 2023 for eligible staff in ASC and ELC.

For workers in CS who previously received National Minimum Wage, this increase will represent a minimum increase in pay of 15.2% compared to April 2023.

First Minister Humza Yousaf said: “Up to 100,000 workers will benefit from this policy. They fulfil a vital role in society, and we are immensely grateful for the contribution they make.

“Pay and conditions are of great importance in the wellbeing and retention of the social care workforce, and that is why we are committing to make sure staff in these vital services are paid at least £12 per hour.

“Four out of five people who will benefit from this uplift in pay are female. Increasing pay not only helps the workforce in question, but will also help achieve our wider priorities on child poverty, fair work, and post-Covid recovery in the health and care sector.”

The Scottish Government is working with COSLA and local authorities to support the implementation of this commitment and will set out further details in the coming months, building on the current guidance that supports implementation of the real Living Wage commitment.