October 26, 2021
2 mins read

UK to increase low-wage workers’ pay by more than inflation

For workers ages 21 and 22, the government said it would increase the minimum wage to 9.18 pounds an hour from 8.36 pounds…reports Asian Lite News.

Millions of low-pay workers in Britain will get an inflation-busting pay increase next year after the government said Monday it will legislate to raise the National Living Wage to 9.50 pounds an hour from the current rate of 8.91 pounds.

Treasury said the 6.6% increase, which will apply to workers age 23 and up starting in April, means a full-time worker making the living wage would get an increase of more than 1,000 pounds per year.

The increase is around double the current rate of inflation, which has gone up sharply in recent months following a big spike in energy costs, including at home and at the pump.

Prime Minister Boris Johnson speaks to employees of Northumbria Healthcare Manufacturing Hub in Whitley Bay during Covid-19. Picture by Andrew Parsons / No 10 Downing Street

For workers ages 21 and 22, the government said it would increase the minimum wage to 9.18 pounds an hour from 8.36 pounds.

Given that inflation is set to rise further in coming months and with a benefit top-up introduced at the start of the coronavirus pandemic withdrawn, there are concerns as to whether the increase will be enough for people trying to make ends meet.

Nye Cominetti, senior economist at the Resolution Foundation think tank, noted that the headline increase would in fact be a “smaller real rise than some recent years” given that inflation is likely to be over 4% by April. Cominetti added that “there will be little protection for low income families from the cost of living crisis facing them this winter.”

The wage increases were announced as Treasury chief Rishi Sunak is preparing to release a budget statement on Wednesday, which could see further measures to address the high cost of living.

Sunak has little wiggle room though given the deterioration in the public finances during the pandemic. However, he is expected to announce another 5.9 billion pounds to help the National Health Service deal with a backlog that has swelled during the pandemic.

ALSO READ-US inflation under control: Yellen

READ MORE-PML-N slams Imran over inflation

Previous Story

UAE envoy presents credentials to Polish President

Next Story

India, UK take part in joint exercise Konkan Shakti 2021

Latest from -Top News

Kenyans put president on notice

Kenya’s fifth president became a remarkably unpopular leader barely two years into his presidency after proposing aggressive tax measures that many saw as a betrayal of his campaign promise to support working-class

World Bank grants South Africa a $1.5 bn loan

Deteriorating rail systems, jammed ports and frequent blackouts have hindered vital industries like mining and auto manufacturing in South Africa, contributing to slow economic growth over the last decade in Africa’s most

Judge halts Trump from dismantling USADF

Congress established USADF as an independent agency in 1980, with the mandate to support economic development initiatives in AfricaXXX In a significant legal development, a federal judge in Washington, DC, has temporarily

BRICS Bank Welcomes Colombia, Uzbekistan

The bank’s Board of Governors approved the accession of the two countries, bringing the total membership to 11….reports Asian Lite News Colombia and Uzbekistan have joined the New Development Bank (NDB), expanding
Go toTop

Don't Miss

Germany invites UK to reach improved Brexit trading deal

Šefčovič has insisted the Brexit deal will not be “put

No need for a fourth Covid jab: UK experts

Latest data from UK Health Security Agency shows booster doses