When will the new living wage be implemented? The year 2022 has been confirmed.
The National Living Wage will be boosted from £8.91 to £9.50 per hour next year, benefiting about two million people.
The Treasury stated on Monday that the rise for all over-23s will take effect on April 1 ahead of Chancellor Rishi Sunak’s Budget this week.
According to the Government, a full-time worker on the living wage will receive a salary increase of more than £1,000 per year as a result of the 59p hourly increase.
For fully immunized people, the lateral flow test rule has changed.
Critics, however, questioned how much better off employees will be, given that the Chancellor has already raised National Insurance and reduced Universal Credit as inflation rises.
The 6.6 percent increase is more than double the current 3.1 percent rate of consumer price inflation.
While everyone under the age of 23 is entitled to the National Minimum Wage, those aged 23 and up are entitled to the National Living Wage.
The minimum wage for individuals aged 21 and 22 would go from £8.36 to £9.18 per hour, while the number for apprentices will increase from £4.30 to £4.81 per hour.
“This wage increase ensures that labor pays, and keeps us on track to reach our goal of ending low pay by the end of this Parliament,” Mr Sunak said.
However, whether the increase is sufficient to help families suffering a cost-of-living crisis will be questioned.
The argument that the raise will make full-time workers £1,000 better off is “nonsense,” according to Torsten Bell, the chief executive of the Resolution Foundation living standards think tank, because “rapid” increasing inflation will eat up two-thirds of the boost.
He also cautioned that businesses with “squeezed profitability” and customers who face higher costs will suffer as a result of the raise.
The TUC’s general secretary, Frances O’Grady, stated that raising the minimum wage is “important,” but that the government should “set its sights higher” by raising it to £10 and canceling the Universal Credit decrease.
“This rise will not take effect until next spring,” she continued, “by which time many household budgets will have been battered by rising bills and the universal credit cut.”
Mike Cherry, the national chair of the Federation of Small Businesses, has urged for hikes. “The summary has come to an end.”