National Living Wage Set To Rise To £9.50 An Hour In The Budget But Is It Enough?
25th October 2021
The National Living Wage is set to rise from £8.91 per hour to £9.50 in the Budget according to some sources
A 6.6% increase in the minimum wage for all those aged 23 and over - more than twice the current 3.1% rise in the cost of living.
The rise is recommended by campaign group the Living Wage Foundation.
The minimum wage that workers get depends on their age and whether they are apprentices.
The National Minimum Wage is the minimum pay per hour to which most workers are entitled.
The National Living Wage is higher than the National Minimum Wage. It applies to workers who are 23 or older.
The new rates will be welcomed by many but some employers say it will increase heir costs. Previously the Kings Fund have pointed out that some employers in the Care Sector forced to pay a higher minimum wage took action by not increasing higher wager earners salaries to help cover the costs of the minimum wage.
With the cost of living rising fast and over one million vacancies in the UK many workers will be looking for wages even higher than minimum wage. The increase in National insurance contribution next April may wipe out some of the increase in the Minimum/Living wage increase.
Employees who use their cars while working may well be looking for an increase in mileage rates as the cost of fuel rises are already hitting hard. The cost of second hand cars has increased by over 18% meaning it is more difficult to afford transport especially for low paid workers.