Minimum Wage
(asked on 22nd March 2022) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much the take home pay was of a worker who was working 40 hours a week on the minimum wage in 2009-10 aged (a) 18, (b) 23 and (c) 30; and how much those sums will be in 2021-22 in (a) cash terms and (b) real terms including in terms of (i) gross wage and (ii) total deductions.
To help tackle low pay in the UK, in 2016 the Government introduced the National Living Wage (NLW). The Government has an ambitious target for the NLW to reach 2⁄3 median earnings and to be extended to those 21 and over by 2024, provided economic conditions allow. Consistent with that target, on 1 April 2022, the Government will increase the NLW by 6.6 per cent to £9.50 an hour for workers aged 23 and over, whilst young people and apprentices will also see their wages boosted as National Minimum Wage rates will also be increased.
The information requested can be found in the table below:
| 2009-10 | 2021-22 | ||||||
| Minimum Wage (£/hr) | Annual gross earnings (cash terms) | Annual net earnings (cash terms) | Minimum Wage (£/hr) | Annual gross earnings (cash terms) | Annual net earnings (cash terms) | Annual gross earnings in 2009 prices | Annual net earnings in 2009 prices |
18-year-old | £4.83 | £10,046 | £8,856 | £6.56 | £13,645 | £12,941 | £10,474 | £9,933 |
23-year-old | £5.80 | £12,064 | £10,248 | £8.91 | £18,533 | £16,264 | £14,226 | £12,485 |
30-year-old | £5.80 | £12,064 | £10,248 | £8.91 | £18,533 | £16,264 | £14,226 | £12,485 |
Notes:
- Figures have been rounded to the nearest £1.
- Net earnings are net of Income Tax and National Insurance Contributions. This analysis does not take into account benefit calculations, given it is heavily dependent on personal circumstances.
- The October 2009 National Minimum Wage (NMW) rates have been used in the 2009-10 calculations, as that is when NMW upratings used to occur. Since 2016 National Minimum and National Living Wages have been uprated every April.
- In 2021-22 those aged 23 and over were eligible for the NLW.
- To calculate 2009 prices, the Office for National Statistics’ (ONS) annual Consumer Price Inflation (CPI) index for October 2009 and October 2021 were used, (source ONS CPI Index 00: all items 2015=100).