Minimum wage set to increase in two weeks – how much will you be earning?

Sleaze row: BBC caller suggests increasing MP wages

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The wage rise will increase earnings for the average worker by an estimated £1,000. However, inflation has been predicted to rise to a staggering eight percent, meaning many are concerned about whether the rise will be enough.

The key details of the minimum wage increase have been shared for Britons to make note of.

The National Minimum Wage rise will add an extra 82 pence to hourly pay.

Labour market statistics showed that skyrocketing inflation is leaps and bounds ahead of the current wages. 

The Office for National Statistics shared that between October and December 2021 average weekly pay fell by -1.2 percent while inflation sat at 5.4 percent. 

It is not just inflation workers are concerned about, as Ofgem confirmed the energy price cap would also be rising in April by almost £700.

Currently, the National Living Wage for different age groups per hour are as follows: 

  • Apprentices: £4.30
  • Under 18: £4.62
  • 18 to 20 years old: £6.56
  • 21 to 22 years old: £8.36
  • 23 years old and over: £8.91.

From April, workers can expect their hourly rates to increase to:

  • Apprentices: £4.81
  • Under 18: £4.81
  • 18 to 20 years old: £6.83
  • 21 to 22 years old: £9.18
  • 23 years old and over £9.50.

The cost of living crisis started taking hold earlier in the year, with Britons concerned for what announcements would be forthcoming to worsen their situation. 

On the same day in early February, Ofgem announced an energy price cap increase, with the Bank of England doubling its base rate as inflation soars.

In response, the Chancellor Rishi Sunak unveiled the Treasury’s plan to help struggling households.

This rebate will not need to be repaid. 

Additionally, a £200 energy bill rebate which will be repaid by households in England, Wales and Scotland over five years through £40 annual instalments. 

Since these announcements, the cost of living and fuel has dramatically increased due to Russia’s invasion of Ukraine. 

As a result the Bank of England has increased the base rate for the third time in six months, now at a 0.75 percent high for the first time since the beginning of the pandemic. 

The Spring Statement due next week could see new measures rolled out to better assist Britons, which some claim could include scrapping of the National Insurance rise due in April. 

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