Minimum Wage vs Living Wage

Feb 11, 2016 | TC blog

In his Autumn Budget, Chancellor George Osborne introduced a compulsory living wage, which comes into effect from 1st April. This is paid to workers aged 25 and above and is initially set at £7.20 per hour, with a target of reaching more than £9 per hour by 2020.

The Office for Budget Responsibility estimates that this change will give a pay rise to six million workers, but could cost 60,000 jobs and reduce hours worked by four million a week.

From 1st April rates change to:

  • Rate for 25+ years old increases by 50p to £7.20 per hour (the compulsory living wage)
  • Rate for 21 to 24 year olds remains £6.70 per hour
  • Rate for 18 to 20 year olds remains £5.30 per hour
  • Rate for 16 to 17 year olds remains £3.87 per hour
  • Apprentice rate remains £3.30 per hour

While the Scottish Agricultural Wages Board sets hourly rates of pay for agricultural workers, the new compulsory living wage will apply to those farm workers aged 25 or over who have been employed for up to 26 weeks.

If you have any questions regarding these changes, please get in touch with Elaine Cromwell on 01383 628800 or



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