UK's Healey says minimum wage to rise by 3.9%
SPY•Britain's finance minister John Healey said minimum wage rates for workers aged 21 and over and those aged 18-20 will rise by 3.9%, taking them to £13.21 and £11.27 an hour, respectively.
1. New wage rates
Healey told lawmakers the 3.9% increases would affect 2.3 million of Britain's lowest-paid workers. The National Living Wage for workers aged 21 and over will rise from £12.71 to £13.21 an hour, while the rate for workers aged 18-20 will increase from £10.85 to £11.27.
2. Pay and business context
In April, the Low Pay Commission said the National Living Wage would probably need to rise by around 3.7% in 2027 to £13.18 to keep pace with expected average pay growth. Businesses, particularly in retail and hospitality, have complained about higher minimum wages and social security contributions, though there is no clear evidence that the wage increases have cost large numbers of jobs. Average weekly earnings excluding bonuses rose 3.7% year over year in the three months to August, while consumer price inflation was 3.5% in September.
