UK Government announces rise in Minimum Wage that could affect minicab drivers in the near future

Millions of workers across the country will receive a rise in their pay, following an increase in the National Minimum Wage and National Living Wage from April 2021.

In his Spending Review, the Chancellor confirmed that the rate rises include a 2.2% increase in the National Living Wage to £8.91, the equivalent of £345 extra per year for someone working full-time.

This increase could soon affect private hire drivers working on app based platforms. The industry is awaiting the imminent decision on a five-year legal battle conducted by Uber drivers seeking workers’ rights, to be reached.

According to legal experts, Leigh Day, whilst any ruling found in favour of the drivers would not be binding for other similar private hire app operators, it would however become “difficult” for others to defend should Uber lose at the Supreme Court.

In the current legal action brought on by Uber drivers, it is argued that Uber should provide its drivers with paid holiday and ensure they are paid at least the minimum wage.

Commenting on today’s increases, the Chancellor of the Exchequer, Rishi Sunak, said: “I know people are struggling, and that they are worried about the months ahead. This above-inflation pay rise will help to protect the lowest paid and put more money in the pockets of hard-working families.”

In full, the increases are:

  • National Living Wage (23+) to increase 2.2%, from £8.72 to £8.91

  • National Minimum Wage (21-22) to increase 2%, from £8.20 to £8.36

  • National Minimum Wage (18-20) to increase 1.7% from £6.45 to £6.56

  • National Minimum Wage (under 18) to increase 1.5% from £4.55 to £4.62

  • Apprenticeship Wage to increase 3.6% from £4.15 to £4.30.

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