Trade union Usdaw has welcomed the increase to the national minimum living wage for retail workers as part of yesterday’s Budget.

The changes will see the national living wage for over-21s increase by 4.1% to £12.71 per hour, and the minimum wage for 18 to 20-year-olds will increase by 8.5% to £10.85.

Additionally, 16/17’s apprentice rate is set to increase by 6% to £8. The higher minimum wage will come into effect on 1 April 2026.

Joanne Thomas, Usdaw general secretary said: “Usdaw very much welcomes these significant pay increases for the lowest paid, after years of pay not keeping pace with prices under the Tories.

”This is because Labour changed the Low Pay Commission’s remit so that they now take account of the cost of living. Today’s announcement also demonstrates further progress towards ending rip-off youth rates with higher percentage increases for under-21s.”

Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning

She added: “Alongside these minimum wage increases, the Employment Rights Bill will deliver fairness by stopping rogue employers from undercutting those who treat their staff properly. When passed, it will give workers security, respect and the decency of an income they can live on.”

Speaking on Wednesday (26 November), Chancellor of the Exchequer Rachel Reeves said: “Too many people are still struggling to make ends meet, and that has to change.

”That’s why today I’m announcing that we will raise the National Living Wage and also the National Minimum Wage so that those on low incomes are properly rewarded for their hard work. These changes are going to benefit many young people across our country, getting their first job.”