Minimum wage set to rise

Photo by Christopher Bill via Unsplash

By Brooke Hughes

Young people in the workplace have something to look forward to next month. The minimum and living wages are going up again.

There’s been a significant push for the national minimum wage to be increased due to the rising inflation rates. The current minimum wage is not enough to sustain a person with no other financial help, especially those under 21 who are being paid up to £5.04 less.

Over the past five years there has been a 38.5% increase for those aged 16-17, with the minimum wage being £4.62 in 2020 and £4.30 for apprentices. With the rise to £7.55 on April 1st there will be a further 17.9% increase, which still is not deemed enough for a person to sustain themselves as the national living wage is £12.21.

The fact that apprentices were paid less than those working other jobs was an  issue as they were being paid below the minimum, which should not have been legal. Apprentices are now paid the minimum wage for those aged 16-17 years no matter what age they are. This does make all apprentices equal, but that wage is not enough money for a full-time job as the average apprenticeship in Scotland can last between one to five years.

As people of different ages have a different minimum wage, those aged 18-20 received a 16.1% increase in their minimum wage, up since 2020 when the minimum was £6.45. With the further increase to £10 an hour there’s been a huge 33.5% increase in just a year which is a step in the right direction towards fair pay.

Those aged 21 and over are currently paid (before the increase in April) £11.44 which has been a 39.5% increase from £8.20 in 2020. The wage is being increased to £12.21 as of April a further 6.7%. While £12.21 may seem like a decent wage, when you take into account all of the expenses the money starts to disappear. The average Scottish full time work week is 36.4 hours, this would generate a monthly salary of £1777.78 at the very most, assuming the workplace gives paid breaks.

According to the Scottish Government, living in Scotland means a single person’s estimated monthly costs are £840 excluding rent. Average rent prices come in at £995 from figures dated in January 2025, resulting in £1835 a month needed for bare necessities leaving no room for savings. Monthly costs work out more than monthly salaries, even after the increase. 

Many bigger companies decide to pay their staff (regardless of age) the national living wage (NLW). Many businesses have received a backlash for not paying their staff  the living wage. Not all large companies pay this regardless of their ability. All businesses should be required to pay their staff a living wage and the distinction between minimum and living wages should be taken away, making the living wage become the new standard as no one deserves to be paid less than a living wage, regardless of their age.

There are arguments towards raising the minimum wage as being harmful rather than helpful with a quote from Oxford University Centre for Business Taxation claiming: “We find that, in fact, the minimum wage does affect the number of small businesses operating in an exposed industry, with about 1.5% fewer businesses following the minimum wage increases. But, we find that the lost businesses are less productive on average.”

While raising wages will help a lot of people there is still a lot of work to be done. It has its positives and negatives as all decisions do, but the data shows the positive impact will help more than it will hinder.