1 week Ago By [email protected] (Ruby Flanagan)
Millions of workers across the country could get a pay rise next year as the National Living Wage looks set to be hiked. The Low Pay Commission (LPC), which advises the Government on the wage rates in the UK, has announced plans to raise the National Living Wage rate from £11.44 an hour to £12.
10. When Labour came into power this year, Deputy Prime Minister Angela Raynor and Rayner and Business Secretary Jonathan Reynolds instructed the LPC to recommend an increase that reflects the cost of living and ensures the national living wage does not dip below two-thirds of median earnings. In response, the LPC said wages would need to rise by about 5.
8% to align with earnings growth, significantly higher than their March estimate of 3.9%. This means the National Living Wage could rise by 66p come April 2025.
The LPC added that two-thirds of median earnings would now serve as a "floor" for their recommendations. However, they noted that their current estimate might continue to rise due to stronger-than-forecast earnings growth in 2024. Alongside this, the current Labour government is looking to further shake up the minimum wage rates by introducing a "genuine" living wage by removing age bands for the statutory rate.
Currently, there is the National Living Wage and the Minimum Wage in the UK. The Living Wage is the rate businesses pay to people over the age of 21 years per hour, while the Minimum Wage is for people under 21 years and it is tired depending on your age. This means you are paid less the younger you are.
Apprentices are also paid a different rate to the National Minimum Wage. They are entitled to the apprentice rate if they’re under 19, or in the first year of their apprenticeship. The current Minimum Wage rates are: 18 to 20 - £8.
60 Under 18 - £6.40 Apprentice - £6.40 If Labour introduces its planned changes, it will mean those aged 18 and over will eventually be paid the same minimum wage.
Chancellor Rachel Reeves will likely confirm and detail any rises in pay rates in the Autumn Statement next month. This will be taking place on October 30. A spokesperson for the Department for Business and Trade (DBT) said: "We are changing the rules to put more money in working people’s pockets.
But we have also been clear we need to consider the businesses who pay these wages, employment prospects and the impact on the wider economy, which is what we instructed the Low Pay Commission to do. 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.".
