Millions of people across the UK are facing soaring bills as the cost of living crisis continues to bite - and it is to get worse. Fuel prices have hit a record high with a litre of petrol reaching an average of £149.22 on Monday.
National Insurance is set to rise in April, as are the bills for mobile phones, satellite TV, not to mention huge gas and electricity price increases due on April 1. Inflation is also pushing up the price of food while an interest rate rise is affecting mortgages for many people.
The Government has announced measures to cope with the expected £693 a year increase on average energy bills, with council tax rebates for some people and a 'loan' to reduce the impact of this year's bills. However, the Russian invasion of Ukraine is also likely to impact costs of fuel and other goods in the UK.
Below, we look at how the minimum wages rises will affect you, in association with the Mirror.
The National Minimum Wage and how it works
This is the minimum amount hourly pay workers are legally entitled to be paid, regardless of whether they are temporary or permanent staff. However, it does not apply to those who are self-employed.
The minimum wage payable is dependent upon the person's age and whether they are an apprentice. The government website states that you must be of school leaving age, which is 16, to receive the minimum wage, while a new system introduced in 2021 means those aged 23 and over now receive a National Living Wage.
The guidance also explains: "It does not matter how small an employer is, they still have to pay the correct minimum wage."
National Living Wage and when it goes up
National Living Wage is a scheme that was introduced in 2016, but until April 2021 it was only available to those aged 25 and over. It is now payable to anyone aged 23 or over, while those between 21 and 22 are paid the minimum wage amount.
The amount workers receive is higher than that of national minimum wage pay, and it will be rising on April 1, 2022. The increase was announced as part of Chancellor Rishi Sunak's Autumn Budget plans in 2021.
At the time, he had also predicted a rise in inflation rates, but few were prepared for the news that rise was set to hit the highest in 30 years to 5.4 per cent in January.
How much will National Living Wage and National Minimum Wage be going up by?
As of April 1, 2022, national living wage will be increasing by 59 pence from £8.91 to £9.50 per hour. This works out to an extra £1,000 annually for full-time workers in the UK. Those on national minimum wage will see a pay increase of 82 pence from £8.36 to £9.18, while apprentices will be paid £4.81 per hour, a 51 pence increase.
The new minimum wage is in line with what the Living Wage Foundation believes allows for those on it to live comfortably in the UK. Labour Shadow Chancellor Rachel Reeves was disappointed by the amount put forward by Sunak and said the government should have raised it to at least £10 an hour.
