“Making work pay” is a popular phrase in UK politics, but it’s rarely clear exactly what it means. Making employers pay higher wages? Making people work more hours? Making welfare payments less? So I’d like to have a brief look at rates of pay in the UK for full-time work (which the government defines as a minimum of 35 hours a week), and how they compare to the average wage and the minimum income standard.

According to research by the Joseph Rowntree Foundation and Loughborough University, the minimum income standard for a single person in 2021 was £20,400 a year. For a couple with two children it was £34,200 between them. How does this compare with UK minimum rates of pay¹? Not well, I’m afraid:

• aged 23 or over: £16,216 per year (due to rise to £17,290 in April 2022)
• aged 21 or 22: £15,215 per year (due to rise to £16,708 in April 2022)
• aged 18 to 20: £11,939 per year (due to rise to £12,431 in April 2022)
• under 18: £8,408 per year (due to rise to £8,754 in April 2022)
• apprentice aged 19 or under: £7,826 per year (due to rise to £8,754 in April 2021)

The UK government calls the national minimum wage for people aged 23 and over a National Living Wage, but as you can see it doesn’t come close to the minimum income standard.

Then there’s the benefits cap. This is the upper limit of welfare payments you can receive in any one year, unless you meet certain requirements. So if, for example, you’re a single adult living alone outside the greater London area, the maximum amount of welfare payments you are permitted to receive is £13,400 per year². That might not be too bad if you have wages as well, whether part-time or full-time, but if you’re unemployed you’re going to struggle. If you’re a single parent who lives with their children, or if you’re in a couple, the maximum amount is £20,000 per year, which is still nowhere near enough if that’s your only income.