As of October 1st 2015, both apprentices and employees on Minimum Wage received a pay rise.
The National Minimum Wage for apprentices has risen by 57 pence to £3.30, the biggest increase to apprenticeship wage, ever. This will mean that an apprentice working 40 hours a week will now have extra £1,185 in their pocket over the year.
The National Minimum Wage for adult workers has also had a substantial increase; from £6.50 to £6.70 an hour. This 3% (20 pence) increase is the largest real increase since 2006.
This is just the tip of the iceberg for over-25s on Minimum Wage, as from next April the planned national Living Wage will come into effect. This will further increase to £7.20 an hour.
Key Points (source: gov.uk)
From 1 October 2015:
- the adult rate will increase by 20 pence to £6.70 per hour
- the rate for 18 to 20 year olds will increase by 17 pence to £5.30 per hour
- the rate for 16 to 17 year olds will increase by 8 pence to £3.87 per hour
- the apprentice rate will increase by 57 pence to £3.30 per hour
- the accommodation offset increases from the current £5.08 to £5.35
So, good news all around then? Well, not quite. While a rise in pay is welcome by many, some businesses are threatening to raise their prices to compensate for the loss of profit that comes from these pay increases. The concern mostly comes from the planned National Living Wage, though it remains to be seen just how much the living wage will affect our economy.