Big Boost for Low-Paid Workers
Over a million workers are set to receive a substantial pay rise as the National Living Wage is expected to increase by more than six per cent in the upcoming Budget announcement by Chancellor Rachel Reeves.
Pay Rise Details
The current National Living Wage, which stands at £11.44 per hour for workers aged over 21, is set to see a significant increase to at least £12.12 per hour, with potential for an even higher rate of £12.20 per hour.
Benefits for Younger Workers
The changes, effective from April 1, 2025, will not only benefit older workers but also aim to equalize pay for younger workers aged between 18 to 20, aligning their wages with those of older workers.
Positive Impact and Responses
The increase in minimum wage has been welcomed by economists and trade unions, highlighting the positive impact on low earners and local economies. The move is seen as a step towards addressing the high cost of living.
Ensuring Fair Pay
Individuals who feel they are not being paid fairly are encouraged to address the issue with their employer and, if necessary, file a complaint through the government's website. Employers failing to comply with minimum wage regulations may face public naming and potential legal action.
Other Budget Changes
Aside from the National Living Wage increase, the Budget is expected to announce changes such as a rise in bus fares, inheritance and capital gains tax increases, and adjustments to National Insurance and income tax thresholds. Investments in job creation and support for disabled individuals are also on the agenda.
