It’s the Conservative Party Conference this week, and Boris Johnson has raised speculation that the National Living Wage could be set for an increase.
It seems his goal is to move the country “towards a high wage, high skill, high productivity economy”. They could potentially be just a few weeks away from signing-off on this rise.
Under the new measures, earners over the age of 23 could receive around £9.42 an hour. This would come into effect from the start of the new tax year, April 2022.
This would be an increase of more than 5 per cent from the current National Living Wage of £8.91 an hour, the third-highest annual rise since the financial crash.
Whilst there are positive reactions to this news and anticipation over an official announcement, there are concerns about the state of the economy and rise in inflation.
A number of workers are currently facing tough cuts, with 2 million low paid workers now losing £20 per week after the ending of the Universal Credit Uplift. The Armed Forces are having a pay freeze imposed on them this year and NHS nurses only offered 3 per cent. However, this is in contrast to the current rate of inflation at 3.2 per cent (potentially increasing to 4 per cent later this year).
The government have stated that they will take guidance from the low pay commission before making any final decisions. The LPC has carried out a consultation to assess the affordability and effect of an increase to the NLW.
We’re sure many in the country will be eagerly awaiting the results.
Source: inews.co.uk