The UK’s National Living Wage will increase by 9.7% to £10.42 ($12.91) an hour, boosting the pay of millions of Britain’s lowest paid workers in the face of double digit inflation.
(Bloomberg) — The UK’s National Living Wage will increase by 9.7% to £10.42 ($12.91) an hour, boosting the pay of millions of Britain’s lowest paid workers in the face of double digit inflation.
The new hourly rate will apply to workers older than 23, with 21-22 year olds getting a 10.9% pay increase, the Low Pay Commission said Friday. Those aged 16-20 year will have a 9.7% raise.
“We remain confident that this increase is unlikely to have a detrimental impact,” said Bryan Sanderson, Chair of the Low Pay Commission, an independent body that advises the government on the minimum wage. “The high levels of inflation are felt more acutely by those on low pay who spend a higher proportion of their income on energy and food.”
The pay increase comes as pressure piles onto Prime Minister Rishi Sunak’s administration to bring an end to strikes, fueled by anger over pay rises for public sector workers that lag the rate of inflation. Months of industrial actions has crippled the country’s railways and impacted its schools, hospitals and postal service.
The Low Pay Commission estimates that lower wages will need to rise next year to between £10.90 and £11.43 in order to meet a government target for the National Living Wage. The age threshold is also expected to lower to 21 years from 2024.
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