The government-set minimum wage, referred to as the National Living Wage, is experiencing its first increase of over £1, benefiting 2.7 million low-paid workers. The primary wage rate is escalating from £10.42 to £11.44 per hour and will be applicable to workers aged 21 and above, rather than those aged 23 and above. Additionally, younger workers will also witness an increase in their respective wage rates.
However, some businesses argue that the increased labour costs will pose challenges in maintaining competitive prices. The adjustments entail significant pay rises for workers: full-time adult employees on minimum wage will experience an annual increase of £1,800, while 21-year-olds transitioning from the lower minimum wage rate to the main rate will receive a £2,300 raise. Additionally, the minimum wage for 18-20-year-olds will rise from £7.49 to £8.60 per hour. Apprentices will also benefit from an above-inflation increase, with hourly pay rising by over 20% from £5.28 to £6.40.
Samuel, a 26-year-old employee at Grindsmith coffee house in Salford, is among those set to benefit from the wage increase. Prior to the pay raise, Samuel found himself with approximately £400 remaining at the end of each month after covering rent and bills, yet he noticed his finances were becoming increasingly strained. "Maybe one month you'll feel financially secure, but the next might prove challenging," Samuel reflects, describing the recurring cycle of financial stress.
