Minimum wage amount in the UK 1999-2022, by wage category

As of 2022, the national minimum wage for adults over 23 in the United Kingdom is 9.5 British pounds an hour. Between April 2022 and March 2023, there will be five minimum wage categories, four of which are based on age and one for apprentice workers. For example, workers under the age of 18 had a minimum wage of 4.81 pounds an hour, increasing to 6.83 pounds for those aged 18 to 20 and then 9.18 pounds for those aged between 21 and 22. When the minimum wage was first introduced in 1999, there were just two age categories; 18 to 21 and 22 and over.

The living wage

The living wage is an alternative minimum wage amount employers in the UK can voluntarily pay their employees. It is calculated independently of the legal minimum wage and results in a figure more of more value than it. For 2021/22, for example, the living wage was 9.9 British pounds an hour for the UK as a whole and 11.05 for workers in London, where the cost of living is typically higher. This living wage is different from what the UK government has named the national living wage, which is the legal minimum wages current average wage category of 23 and over.

Inflation outpacing wage growth

Due to prices rising rapidly, especially energy prices, the UK is currently in the grip of a severe cost of living crisis. Wage growth has been unable to keep up with record inflation levels, resulting in the biggest fall in disposable income since 1956. Although the UK government has attempted to mitigate the impact of falling living standards through a cost of living payment, the situation could deteriorate further in the winter. An energy cap rise in April saw many UK households take an economic hit, with their misery compounded by the fact this will likely happen again in October. It is hoped the cost of living crisis will ease in 2023, especially if inflation is brought under control as is anticipated.