To continue reading please register or login to your OHW+ account.
The national living wage will increase to £9.50 an hour from 1 April 2022, HM Treasury has revealed. The rate, which applies to workers aged 23 and over, will increase by 59p per hour from the current rate of £8.91.This is a 6.6% increase in the NLW, more than twice the current 3.1% CPI rate of inflation. It will mean that the lowest-paid workers will see their annual income rise by £1,000, it has been estimated. The minimum wage rates for younger workers will also rise. The national minimum wage will rise from £8.36 an hour to £9.18 an hour for those aged 21 to 22; from £6.56 to £6.83 for those aged 18 to 20; from £4.62 to £4.81 for under 18s; and from £4.30 to £4.81 an hour for apprentices. A statement issued by the Treasury said: “By introducing these changes, which are broadly consistent with previous increases, the government accepts all recommendations made by the Low Pay Commission – an independent advisory board which brings together economists, employer and employee representatives. “The government remains committed to meeting its ambitious target of a national living wage of two-thirds of median earnings and expanding it to include workers over the age of 21 by 2024, provided economic conditions allow.” Chancellor Rishi Sunak said: “This is a government that is on the side of working people. This wage boost ensures we’re making work pay and keeps us on track to meet our target to end low pay by the end of this parliament.” He is expected to confirm the increase in his Budget on Wednesday (27 October). TUC general secretary Frances O’Grady said: “With Britain in the midst of a cost-of-living crisis boosting the minimum wage is vital. But the government must set its sights higher. We need a £10 minimum wage now, and we need ministers to cancel the cut to universal credit. “This increase won't come into effect until next spring by which time many household budgets will have been hammered by rising bills and the universal credit cut.” A spokesperson for the Recruitment and Employment Confederation said that the increase will put pressure on sectors such as care and hospitality. “The big unanswered question is
previous post