New minimum and living wage rates announced by the Treasury on the eve of make-or-break Budget
A pay rise for 2.7million people has been announced by Rachel Reeves. On the eve of her make-or-break Budget, the Chancellor said the Government would increase both the minimum wage and the National Living Wage.
From April 1, the living wage will rise by 4.1% to £12.71 per hour for eligible workers aged 21 and over. This will increase the gross annual earnings of a full-time worker on the living wage by £900, benefiting about 2.4million low-paid workers. The minimum wage rate for 18 to 20-year-olds will also increase by 8.5%, to £10.85 per hour. This will mean an annual earnings increase of £1,500 for a full-time worker.
In the long run, the Government wants to end the 18-20 band entirely so that everyone aged 18 or over is eligible for the same living wage.
Ms Reeves said: “I know that the cost of living is still the number one issue for working people and that the economy isn’t working well enough for those on the lowest incomes. Too many people are still struggling to make ends meet. And that has to change.
