The Labour Party and the minimum wage: What is the current minimum wage in the UK and what it means for Labour?

Ahead of the Budget next week, the National Minimum Wage is expected to rise, coming into effect from April 1 2022.

The topic of the National Minimum Wage was a divisive subject at the Labour Party’s Annual Conference earlier this year, causing the resignation of a shadow minister.

Now, ahead of the Budget 2022 announcement next week, the National Living Wage is expected to rise.

Here’s what you need to know about the minimum wage and what changes could be around the corner.

What is the current National Minimum Wage?

It is compulsory for employers to pay the National Minimum Wage, but it can vary depending on the age of the employee.

Everyone over school leaving age should earn the minimum wage and those aged 23 and over get paid the National Living Wage.

The current hourly rate for the National Minimum Wage is £4.30 for apprentices, £4.62 for those aged under 18, and £6.56 for those aged between 18 and 20.

Shadow chancellor John McDonnell says that the Labour party is "more divided than ever" under Sir Keir. Photo: Gareth Fuller/PA Wire

This rises to £8.36 for workers aged between 21 and 22, and £8.91 for people aged 23 and over.

Apprentices are entitled to the apprentice rate if they are aged under 19 or if they are older than 19 and in the first year of their apprenticeship.

They should receive the National Minimum Wage if the apprentice is both 19 and over and has completed the first year of their apprenticeship.

What is the minimum wage in Scotland?

The minimum wage is set by the UK government, making it uniform across England, Scotland, Wales, and Northern Ireland.

So the Scottish minimum wage is set at the same rates as the rest of the UK.

Is the minimum wage going up in 2021?

The National Minimum Wage was last raised on April 1, 2021 and is not due to increase again this year.

This was also the first year that the National Living Wage was extended to 23 and 24-year-olds – before it was for those aged 25 and over.

Each year on April 1, the National Minimum Wage is adjusted by the UK government.

News came out on October 25th that the National Living Wage is set to rise from £8.91 per hour to £9.50 in the Budget, which will be announced next week.

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Who has resigned from the Labour Party?

In the midst of Labour’s 2021 party conference in Brighton a few weeks ago, shadow cabinet member Andy McDonald became the latest Labour Party resignation,

Mr McDonald published his resignation letter in protest at being asked to “argue against a National Minimum Wage of £15 an hour” by Sir Keir Starmer’s office.

In the letter, Mr McDonald wrote that the Labour Party is "more divided than ever" under Sir Keir.

The shadow secretary for employment rights and protections was one of just a few to survive Sir Keir’s reshuffle.

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What was the response from Labour Party members?

Sir Keir responded to the Labour Party resignation by thanking Mr McDonald for his service, but said that he was focused on winning the next general election.

Other Labour party members have questioned Sir Keir’s leadership, including former shadow chancellor and prominent figure on Labour’s left, John McDonnell, who said that “questions have got to be asked about Keir Starmer. The conference is falling apart”.