Millions could get a 'huge pay increase' next year in 2024
Posted by Emily on 7th Nov 2023
Next year, many could see a significant boost in their pay. The Chancellor, Jeremy Hunt, has hinted that the national living wage might increase to £11 per hour by April 2024. However, recent projections indicate that this figure could be too conservative.
It's possible that the national living wage may jump to £11.46 per hour next year, surpassing the government's current predictions.
This wage is intended for adults over 23 and is adjusted according to the median hourly earnings. With wages growing more than anticipated, the increase come April might be more than the £11 per hour previously mentioned by the Chancellor.
Statistics have shown that average weekly earnings rose by 7.8% in the period leading up to August. The Resolution Foundation, a policy think tank, believes this could mean an additional £1.04 per hour to the national living wage, increasing it from the existing rate of £10.42.
Senior economist at the Resolution Foundation, Nye Cominetti, noted: "The Chancellor has said that the national living wage is set to reach at least £11 an hour by next April. Yet, in an unusual twist, it seems that the actual rate might be closer to £11.46. Such an increase would greatly benefit millions of low-wage workers who are struggling with the rising cost of living.
But, Cominetti warns that a higher minimum wage is not a cure-all for improving living standards. Over the past ten years, despite a 27% real-term increase in hourly pay, cuts in benefits for working-age individuals have often negated the advantages of the national living wage, especially for low-paid families with children who depend on these benefits.
To truly uplift the livelihoods of those earning the least, Cominetti suggests that an increase in the minimum wage should be part of a broader strategy. This should include better working conditions and a more robust social security system."
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