Millions of workers across the UK will benefit from a pay increase next week due to a hike in the National Living Wage. This was one of several policies announced by Chancellor Rachel Reeves during her Autumn Budget last year.
From April 1, those on the National Living Wage will get a payday boost worth £1,400 a year. That works out around £25 a week or £100 a month for an eligible full-time worker. Full-time workers on the National Minimum Wage could receive an income boost of up to £2,500 a year. A spokesperson from the Cabinet Office said: “This change is another step towards creating a genuine living wage that supports millions of families across the country.”
While the move has been much welcomed during the ongoing cost of living squeeze, businesses warn that this, combined with Ms Reeves’s Employer National Insurance hike also set to take effect next month, may mean they’ll have to freeze hiring or lay off staff to offset the costs.
Many have called for some form of relief during Ms Reeves’s Spring Statement on Wednesday, March 26. However, any offers or changes seem unlikely. While tax increases should not be on the table, the Chancellor is expected to announce billions of pounds worth of spending cuts to balance the books.
This follows the Office for Budget Responsibility (OBR) estimations that high borrowing costs and low economic growth have wiped out the Government’s £9.9 billion fiscal headroom.
Here, we’re reporting live ahead of the Chancellor’s Statement.
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