The 4.4 per cent increase on the National Living Wage rate is an annual payrise to all those in the UK aged over 25.
The rates are reviewed yearly by the Government, which is advised by the independent Low Pay Commission. It is targeted to reach 60 per cent of median earnings by 2020 – current forecasts put this as being around £9.20 an hour.
The commission has also said this year sees the largest increase in a decade for 18-20- and 21-24-year-olds, with a rise of 4.7 per cent and 5.4 per cent respectively.
However, the childcare sector has struggled with the fee rises on top of the 30 hours rates and other rising business costs.
The Treasury Select Committee this week said it had seen no evidence that increases in the National Living Wage have been factored into the hourly rates provided by Government to subsidise the 30-hour offer.
National Minimum Wage rates
|
Minimum Wage rate |
Current rate (hourly) |
from 1 April 2018 |
|
National Living Wage |
£7.50 |
£7.83 |
|
21-24 Year Old Rate |
£7.05 |
£7.38 |
|
18-20 Year Old Rate |
£5.60 |
£5.90 |
|
16-17 Year Old Rate |
£4.05 |
£4.20 |
|
Apprentice Rate |
£3.50 |
£3.70 |
|
Accommodation offset |
£6.40 |
£7.00 |
The Government says the rate rises are part of a higher-wage, lower-tax and lower-welfare policy.