Over 200,000 in NI set for pay boost in two weeks as major change takes effect

Nearly a quarter of a million people in Northern Ireland are set for a pay rise in a fortnight, according to a new analysis by the Living Wage Foundation.

The minimum amount that employers must pay their workers is set to go up to £12.20 per hour for those aged 21 and over on April 1 - as part of a raft of changes first announced by the UK Chancellor Rachel Reeves in her autumn budget. Pay for those aged under 21 must be at least £10 per hour from the same date.

Analysis of official UK pay statistics shows that around 224,000 people earned less than £12 an hour in 2024 - meaning that if they're aged 21 or over, they are set for a pay boost when the new legal minimum wage kicks in.

The Living Wage Foundation, in its analysis, looked at the number of people throughout the UK earning less than the 'real living wage' - a pay rate determined by looking at the cost of living, taxes and other factors to figure out what's required for a decent standard of living in the UK.

The analysis, based on figures published by the Office for National Statistics and Northern Ireland Statistics and Research Agency, breaks the UK down into 12 regions - the North East, North West, Yorkshire and The Humber, East Midlands, West Midlands, South West, East, London, South East, Wales, Scotland, and Northern Ireland.

It found that in Northern Ireland, more than a fifth, 20.5%, of workers earned less than the living wage of £12 per hour when the data was compiled. For the UK as a whole, 15.7% earned less than the living wage.

The foundation, meanwhile, says that the new legal minimum wage set by the government still won't be enough to ensure a decent standard of living in 2025. While £12 per hour was the rate set for the living wage when the figures were put together last year, the cost rises, and other changes mean workers now need to be earning at least £12.60 for a decent life and even more for those living in London. And the real living wage is set to rise further when it's calculated again in the autumn.

Bob Stronge, chief executive officer at Advice NI said the report shows that wages are "failing to keep up with the cost of living, pushing more and more workers right across Northern Ireland into in-work poverty".

Mr Stronge added: “More than one in four workers paid below the Real Living Wage rely on foodbanks at least once a month, whilst one in three skipped meals for financial reasons. Also worrying is that a third of low-paid workers have fallen behind on household bills, and almost a quarter report not being able to afford to heat their homes. The reality paints a poor outlook for the resilience of Northern Ireland’s workforce with 67 per cent of low-paid workers reporting that their pay has negatively affected their mental health."

He continued: “We recognise that many employers are struggling with rising operational costs, particularly with April’s changes just weeks away. However, employers should view a commitment to the Real Living Wage as an investment. We all benefit from a stronger, more compassionate and equal society, and this starts with an equitable workforce.”

Across the UK, the Living Wage Foundation's research found that the sector with the highest number of low-paid jobs in 2024 was ‘wholesale and retail’ (1,064,000), followed by ‘hospitality’ (776,000) and ‘human health and social work’ (677,000).

Mary McManus, regional manager for Living Wage NI, called on more employers to pay their workers the 'real living wage'.

“Living costs are spiralling, and people are struggling to put food on the table and heat their homes, so this research is particularly disappointing news for Northern Ireland," she said. "However, more and more employers are starting to appreciate that paying the Real Living Wage isn’t just the right thing to do for their workers, it is also good for business by helping to attract and retain people."

The number of people earning less than £12 in Northern Ireland, broken down by council area, is as follows:

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