Millions of UK workers could see a boost in their bank accounts starting April 7, as the UK's lowest-paid workers receive a salary increase, resulting in an additional £160 for many.
Major National Living Wage Increase Eases Cost-of-Living Pressures
The latest wage increase stems from the National Living Wage rate hike, announced last year but taking effect in April. Rising from £10.42 to £11.44 per hour, this pay raise offers crucial relief to individuals grappling with the persistent cost-of-living challenges of recent years.
This marks a significant step forward for full-time employees, signalling a meaningful increase in their annual earnings. It's a big win for workers, showing that the government is keeping its promises to improve wages. Beyond just the financial boost, it's a real achievement in policy-making, reflecting our ongoing commitment to narrowing income gaps and enhancing living standards for everyone in the country.
Expanded Living Wage Benefits More Workers Amidst Economic Challenges
Extending beyond the preceding age threshold of 23, the new Living Wage now encompasses individuals aged 21 and above. This broader eligibility ensures that a larger number of workers will benefit from the salary boost.
Pay Fit, a finance website, emphasised: “Inflation and the cost of living crisis still make this a vital issue to tackle across the UK. This year, the government has done away with the 21–22 age bracket, so employees aged 21+ must receive the National Living Wage.”
With this £1.02 hourly raise, an average full-time worker could see an extra £160 added to their monthly earnings and about £2,300 annually for a full-time employee.
According to the National Living Wage Foundation's website, “the real Living Wage is the only UK wage rate based on the cost of living. It is voluntarily paid by over 14,000 UK businesses who believe their staff deserve a wage which meets everyday needs—like the weekly shop, or a surprise trip to the dentist.
“Over 460,000 employees have received a pay rise as a result of the Living Wage campaign, and we enjoy cross-party support. We have a broad range of employers accredited with the Foundation, including half of the FTSE 100 and big household names including Nationwide, Google, LUSH, Everton FC and Chelsea FC, as well as thousands of SMEs.”
The start of the new fiscal year in April will bring with it a number of significant financial changes. Pension and benefit budgets will rise, while millions of individuals will pay less in National Insurance, allowing them to retain a larger portion of their earnings.