Yahoo Finance Budget 2021: National living wage to rise to £9.50 an hour
The National Living Wage is to rise from £8.91 to £9.50 an hour in the upcoming budget.
The Treasury confirmed the move for all over-23s on Monday ahead of Chancellor Rishi Sunak's Budget this week.
It means millions will get a pay rise next year and follows a recommendation from campaign group the Living Wage Foundation.
The 59p hourly boost will mean a full-time worker on the living wage will get a pay rise of more than £1,000 per year.
The increase is more than twice the current consumer price inflation rate of 3.1 per cent.
The national living wage is higher than the minimum wage and applies to workers who are 23 and older.
Under the government’s plans, the figure will rise from April
For those aged 21 and 22, the minimum wage will rise from £8.36 an hour to £9.18, while the figure for apprentices will go from £4.30 to £4.81 per hour.
It comes after prime minister Boris Johnson spoke of his desire to create a “high-skill, high wage” economy earlier this month.
The Labour party has called for an increase at least £10 an hour.
Mr 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.”
But there will be questions over whether the hike is enough to support families facing a cost of living crisis.
More follows.
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