Summary
The UK government announced an increase in the minimum wage starting from April, affecting millions of workers. Workers aged over 21 will see their hourly pay increase to £12.71, while younger workers and apprentices will also receive pay rises. Businesses have warned that the wage hike might lead to hiring freezes and could increase costs, potentially leading to higher prices for customers.
Key Facts
- The minimum wage for individuals over 21 will increase to £12.71 per hour starting in April.
- Workers aged 18-20 will receive an 85p increase per hour, raising their wage to £10.85.
- Those under 18 and apprentices will see a 45p increase, setting their wage at £8 per hour.
- Chancellor Rachel Reeves stated that 2.7 million people will benefit from these increases.
- Businesses have expressed concern that higher wages might lead to reduced hiring or increased consumer prices.
- The previous year's wage increases were 6.7% and 16.3% for different age groups.
- The government aims to phase out the separate wage band for young adults aged 18-20.
- The voluntary Real Living Wage rate is higher than the new minimum wage, at £13.45 nationally and £14.80 in London.
