(qlmbusinessnews.com Wed, 22nd Nov, 2023) London, UK —
Breaking News: UK Minimum Wage Surges to £11.44, Marking a Significant Step Towards Ending Low Pay
The United Kingdom government has revealed that the minimum wage will see a significant boost to £11.44 per hour starting in April of next year. Currently, the National Living Wage stands at £10.42 per hour for workers aged 23 and above. However, Chancellor Jeremy Hunt has made the decision to extend this rate to include 21 and 22-year-olds as well.
This change in policy means that a full-time worker aged 23 will experience a yearly increase of £1,800. Similarly, a 21-year-old employee would witness an effective rise of £2,300 annually. These confirmed increases, set to be outlined in Mr. Hunt's Autumn Statement, represent a 9.8% rise for those aged 23 and above compared to last year. For workers aged 22 and 21, the increase will be even more substantial at 12.4%.
At present, the minimum wage for individuals aged 21-22 stands at £10.18 per hour. Additionally, the National Minimum Wage for 18-20-year-olds will be raised to £8.60 per hour from £7.49. Overall, these above-inflation wage hikes will benefit approximately 2.7 million low-paid workers in the country.
Apprentices will also experience a pay increase of over 20%.
Their hourly wage will rise from £5.28 to £6.40. The proposals for these adjustments were fully accepted by the Low Pay Commission, the advisory body to the government on matters concerning the minimum wage. Mr. Hunt highlighted that the Conservatives have successfully achieved their goal of “ending low pay” by elevating the living wage to two-thirds of the average earnings measure.
Bryan Sanderson, chairman of the Low Pay Commission, mentioned that the recommendation to raise the minimum wage to £11.44 aims to navigate the challenges posed by political and economic uncertainties. This decision comes at a time when rising living costs have squeezed household budgets, particularly affecting those with lower incomes who face higher energy and food expenses.
While the pay rises have been welcomed by many, there are concerns within certain industries. Last year's similar wage increase prompted apprehension from retail and hospitality businesses due to the potential impact on their wage bills. Kate Nicholls, chief executive of UK Hospitality, expressed the need for additional measures to reduce tax and costs, specifically mentioning business rates.
In summary, the UK government's decision to increase the minimum wage to £11.44 per hour demonstrates its commitment to improving the financial well-being of low-paid workers and reducing income inequality in the country.
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