The Government has announced changes that will affect millions of workers
Many workers are set to benefit from the announcement (Image: Getty)
The Government has announced that minimum wage rates will increase next year, resulting in a pay rise for millions of workers. Chancellor Rachel Reeves stated that she had accepted recommendations from the Low Pay Commission to ensure those on low incomes are “properly rewarded” for their work.
From April next year, the National Living Wage will see a 4.1% increase to £12.71 an hour for eligible workers aged 21 and over. The Government claims this will boost the gross annual earnings of a full-time worker on this rate by £900, benefiting approximately 2.4 million low-paid workers.
The National Minimum Wage rate for 18 to 20 year olds will rise by 8.5% to £10.85 an hour, reducing the gap with the National Living Wage.
This adjustment will result in an annual earnings increase of £1,500 for a full-time worker, marking further progress – officials say – towards the Government’s aim of phasing out 18 to 20 wage bands and establishing a single adult rate. The National Minimum Wage for 16 to 17 year olds and apprentices will also increase by 6% to £8 an hour, reports Bristol Live.
Chancellor Rachel 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.
“That’s why today I’m announcing that we will raise the National Living Wage and also the National Minimum Wage, so that those on low incomes are properly rewarded for their hard work. These changes are going to benefit many young people across our country, getting their first job.”
The Government has stated that the increases will benefit a total of 2.7 million young and older workers. The government says that by seeking expert and independent advice, it was able to ensure that the right balance is struck between the needs of workers, the affordability for businesses and the opportunities for employment.
The Chancellor claims that in today’s Budget, she will deliver the Government’s mandate for change, adding that she was determined to cut the cost of living for everyone.
