Pay, minimum pay and inflation

Minimum wages have gone up by slightly more than the recent level of pay settlements, but the new rates are still below the “real” Living Wage. Both of these are pay ‘floors’ and trade unions aim to secure higher wages wherever they can.

From 1 April the statutory minimum rate for workers aged 21 and over (confusingly called the ‘National Living Wage’) went up by 50p to £12.71 per hour, an increase of just over 4%.

The rate for workers aged 18-20 went up by 85p to £10.85 per hour. Under-18s and certain apprentices must now be paid a minimum of £8 per hour, up by 45p.

Self-employed people and those in some specific roles may not be covered by these statutory minimum rates (see https://www.gov.uk/national-minimum-wage/who-gets-the-minimum-wage).

If workers aren’t getting the pay they think they are entitled to, their union should be able to help, and it’s another good reason why non-members should join. Hounslow Citizens Advice may also be able to help (see https://hounslowcabs.org.uk).

Many employers agree to pay a higher minimum rate known as the “real” Living Wage. It is set by the Living Wage Foundation, and London employers who follow its rates should already be paying at least £14.80 per hour (see https://www.livingwage.org.uk/news/national-living-wage-rise-welcomed-millions-still-short-real-living-wage).

Unions have been winning pay rises worth around 3.8% in the middle of the range this year, according to the union-based Labour Research Department (LRD). At that level, settlements would have beaten recent increases in the cost of living, but employers warn that food inflation ‘could hit 9%’ thanks to the war against Iran.

Some recent pay settlements have been worth much more than 3.8%. Over 130 cabin crew at Scandinavian Airlines (SAS) secured an 8% pay rise, backdated to November 2025, after strike action over Christmas. Their 14-month deal included higher incremental increases for longer service (https://www.lrd.org.uk/news/payline-release-march-2026).

Hounslow Trades Council would like to hear from local trade unions about their pay negotiations, settlements and pay campaigns. Please email any information you can share to secretary@hounslowtradescouncil.org

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