Minimum wage rise: Nine issues to know as Rachel Reeves anticipated to lift charges in Budget
What you need to know about the minimum wage
- The UK minimum wage is split between the National Minimum Wage, which sets a per hour wage floor for people aged 16 to 20, and the National Living Wage, to which people aged over 21 are entitled.
- At present, the National Minimum Wage is set at £10 per hour for people aged 18 to 20, and £7.55 per hour for under-18s. The National Living Wage is slightly higher, coming in at £12.21 per hour for people aged 21 and over.
- Rates will rise across the board, the Chancellor has said, off the back of recommendations made by the Low Pay Commission, and independent body that advises the government on changes to the Minimum and Living wage.
- The National Minimum Wage will see an increase of 8.5 percent in the new tax year next April, rising to £10.85 per hour. The National Living Wage, in kind, will rise to £12.71 per hour.
- The boost will amount to an estimated annual hike of around £900 for up to £2.4 million of the lowest paid people in the UK, and an annual earnings boost of £1,500 for a full-time worker.
- Ms Reeves has told the Mirror that Labour is working to relieve the cost of living pressures being experienced by many Brits, and build the economy into one “that works for and rewards working people”
- She told us: “Mirror readers will know that people on low incomes are feeling cost of living pressures the most. This Labour government will make sure working people have more money in their pockets – that’s why we’re increasing the National Minimum and Living Wage, so we can build an economy that works for and rewards working people.”
- The changes come on top of minimum wage boosts of 6.7 percent and 16.3 percent respectively over the last year, when Labour also increased employers’ National Insurance.
- The new changes combined with what has already come are expected to impact decision-making at companies, with executives likely to look for ways to reduce costs.
- READ THE FULL STORY: Millions of workers in line for pay rise as minimum wage hike confirmed