National living wage set to increase to £9.50 per hour

The Chancellor is set to announce an increase to the national living wage from £8.91 to £9.50 per hour.

The national living wage is predicted to rise for workers aged 23 and over.

Those below the age of 23 are paid the national minimum wage, which varies depending on age. The current rates are £4.62 for under 18’s, £6.56 for 18-20 year-olds and £8.36 for 20-22 year-olds.

national living wage increase

In recent months the government has been under pressure to help those who have been worst hit by the coronavirus pandemic, including younger workers.

The wage increase comes after households face increasing costs of energy and rising consumer prices.

The Bank of England’s chief economist has warned that UK inflation is likely to hit or surpass 5% by early 2022.

Chancellor Rishi Sunak is also likely to introduce further tax hikes as a way of easing the financial strain caused by the coronavirus pandemic. 

The Autumn Budget is due to be announced on Wednesday.