When the minimum wage and the living wage are going up and everything you need to know

By Hull Daily Mail | Posted: 21 Mar 2017

Both the Minimum Wage and the Living Wage will rise next month - which should be good news for low-paid workers across Hull.

Changes announced by Chancellor Philip Hammond in his Spring Budget will mean a four per cent pay rise for workers 25 and over, which means those working full time will be £500 better off over a year.

For those aged 25 and over the hourly rate will increase from £7.20 to £7.50 an hour.

You can use the minimum wage calculator to check whether the National Minimum Wage or National Living Wage is being paid.

What's the difference between the Minimum Wage and the Living Wage?

The Minimum Wage is the minimum pay per hour workers are entitled to by law. The rate will depend on a person's age. If you are an apprentice the rate is different.

Workers must be at least school leaving age to get the Minimum Wage and the rates are reviewed by the Government each year.

The Living Wage is only applicable to workers 25 and over but is otherwise effectively the same. It was launched in 2015 under the former Chancellor George Osborne and it was rolled out in April 2016.

The Living Wage represents the government's aim of raising the wages of those aged 25 and over to £9 an hour by 2020.

What are the changes to the Living Wage and the Minimum Wage in April 2017?

Both the Living Wage and the Minimum Wage will be increasing.

The rates from 1 April 2017 will be:

  • £7.50 per hour (up 30p) - aged 25 and over
  • £7.05 per hour (up 10p) - aged 21-24
  • £5.60 per hour (up 5p) - aged 18-20
  • £4.05 per hour (up 5p) - aged 16-17
  • £3.50 for apprentices under 19 (up 10p). And those 19 and over who are in the first year of apprenticeship.

When will the changes come into force?

The changes are set to go live on April 6.

How many Hull workers will be affected?

While cost of living is low in Hull, wages are also quite low. Around a third of workers in some parts of the city have been earning less than the Living Wage.

Are companies adhering to the law?

Most companies are paying at least the Minimum or Living Wage but last month some companies fell short.

The Department for Business, Energy and Industrial Strategy (BEIS) released a list of businesses which had not paying staff the Minimum Wage they were entitled to.

Cake manufacturers Greencore Grocery Limited, based at Sutton Fields Industrial Estate in east Hull, failed to pay £1,675.50 to 22 workers.

Heron Foods Limited's distribution centre in North Ferriby was deemed to have underpaid 15 workers by £5,899.50, while 3 Oceans Fish Company Limited – a fish sales and transporter outfit based in Witty Street, west Hull – underpaid a single worker by £1,678.09.

Trimline Systems (Yorkshire) Limited, an alloy wheels repair company in Hedon Road, east Hull, failed to pay £1,398.59 to two workers.

The companies, having been ordered to pay the above amounts to the claimant employees, were also fined the same amount by the Department for Work and Pensions.

What is the employment landscape in Hull?

There are a total of 118,000 employee jobs in Hull with 67.8 per cent full time and 32.2 per cent part time.

The number of employee jobs has increased every year over the last four years.

The majority of jobs (19,000) in Hull are in manufacturing while other areas include health (15.3 per cent), business admin and support (11.9 per cent), retail (10.2 per cent) and education (10.2 per cent).

A total of 67.5 per cent of all working age people are in employment, compared to 74.1 per cent nationally.

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