Millions to Receive National Living Wage Increase
Millions of workers in the UK are in line for a wage increase as the UK Government has directed the Low Pay Commission (LPC) to recommend an increment in the National Living Wage. Here are the key details you need to know:
– The LPC has proposed raising the National Living Wage from £11.44 per hour to £12.10, aiming to mirror living costs and ensure the wage remains above two-thirds of median earnings.
– The LPC predicts that to match earnings growth, wages must rise by approximately 5.8%, a significant increase from their earlier forecast of 3.9%. This could result in a 66p increase in the National Living Wage by April 2025.
– The LPC plans to use two-thirds of median earnings as a baseline for future recommendations and is open to revising projections if 2024 earnings exceed expectations.
In the UK, there are currently two wage standards: the National Living Wage for individuals over 21 and the Minimum Wage for those under 21, with varying rates based on age. Apprentices receive a different wage, eligible for the apprentice rate if under 19 or in their first year of apprenticeship.
With the proposed reforms by the Labour government, all workers aged 18 and above could eventually receive the same minimum wage. Chancellor Rachel Reeves is expected to provide more details on potential pay increases during the Autumn Statement on October 30.
A Department for Business and Trade (DBT) spokesperson said, “We are changing the rules to put more money in working people’s pockets. We believe a hard day’s work deserves a fair day’s pay and that’s exactly what our Make Work Pay plans will do working in conjunction with business.”
This significant wage increase aims to address living costs and ensure fair compensation for workers across the nation. Stay tuned for more updates on this developing story.