People on National Living Wage could see hourly payments rise to £11.46 per hour from next April
06.11.2023 - 14:15
/ dailyrecord.co.uk
The National Living Wage could rise next year to well above what the UK Government has announced, according to a new report from the Resolution Foundation. It said stronger than expected wage growth means the figure could increase to around £11.46 per hour next April - well above the £11 suggested recently by Chancellor Jeremy Hunt.
The think tank said the National Living Wage is currently pegged to median hourly pay, so strong wage growth in recent months - average weekly earnings grew by 7.8 per cent in the three months to August - should increase its cash value next April. The foundation’s calculation implies the statutory rate will rise to £11.46 per hour next year, up from the current £10.42.
This would be a 10 per cent increase in real-money terms, the third largest percentage cash increase in the minimum wage during its 26-year history.
Nye Cominetti, senior economist at the Resolution Foundation, said: “The Chancellor has announced that the National Living Wage would rise to at least £11-an-hour next April.
“This looks to be a rare case of a politician underpromising, as the actual rate is more likely to be around £11.46. This would be a huge pay increase that will help millions of low earners as they navigate the cost of living crisis.”
However, he warned that a higher minimum wage alone cannot deliver higher living standards for everyone, saying that over the past decade, cuts to working-age benefits have offset the gains from the National Living Wage for many.
Cominetti continued: “Low-paid families with children in receipt of benefits will have experienced next to no, or even negative, income growth over this period, despite their hourly pay rising by 27 per cent in real terms.
“A strategy to boost the living