Major wage rise for millions as some get extra £2,500 a year

Millions of workers across Britain are in line for a significant pay increase following the Government's confirmation of substantial hikes to the National Living Wage and Minimum Wage in just a few weeks. Starting on April 1, over three million workers will see their pay packets swell as the new rates kick in, providing full-time staff with an additional £1,400 annually.

Moreover, officials say around four million more could reap benefits from the ripple effects. The National Living Wage is set to leap to £12.21 per hour, while the National Minimum Wage for younger workers aged 18-20 will climb to £10 an hour – a historic uplift that translates to an extra £2,500 a year for those working full-time. This initiative is part of the Government's Plan for Change, aimed at increasing the earnings of diligent Brits and stimulating economic growth.

However, business leaders have voiced concerns that they might need to scale back on hiring and investments to manage these increased costs. Particularly vocal are those in the pub, hospitality, and retail sectors, who argue that the wage increases, coupled with a rise in National Insurance contributions paid by employers, effectively create a "jobs tax". They claim this could hinder their capacity to invest and expand, potentially leading to higher consumer prices.

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The upcoming changes from April will result in:

* The National Living Wage for those aged 21 and over rising from £11.44 per hour to £12.21 per hour. .

* The National Minimum Wage for 18- to 20 year olds going up from £8.60 to £10.00 per hour. .

* Increases in the apprenticeship rate, and for 16- to 17 year olds, from £6.40 per hour to £7.55 per hour.

Employment Rights Minister Justin Madders praised the pay increase, remarking: "Economic growth only matters if working people feel the benefits. This will be a huge pay bump for millions, putting more money in their pockets and boosting the high street." Chancellor Rachel Reeves also expressed satisfaction, stating: "We promised a genuine living wage, and we are delivering. This pay rise will help hardworking Brits cope with the cost of living."

Deputy Prime Minister Angela Rayner chimed in, saying: "We’re fulfilling our promise to make work pay. This is about giving workers the dignity they deserve and helping young people get ahead."

The new wage rates have been set considering the cost of living and inflation for the first time. The government wants to eliminate the wage disparity between younger and older employees, aiming to establish a single adult wage rate down the line. Baroness Stroud, Chair of the Low Pay Commission, described this adjustment as a "big step towards a real living wage".

Apprentices are set to receive a significant uplift too, with their wages rising by 18% from £6.40 to £7.55 per hour. For an 18 year old apprentice in sectors such as construction, this means a substantial increase in their earnings.

The recent rise marks the biggest leap in wages for Britons in several years, set against a backdrop where the cost-of-living crisis has led to the most significant squeeze on living standards in two centuries. TUC General Secretary Paul Nowak welcomed the adjustment, remarking, "This will make a real difference to the lowest paid, at a time when one in six are skipping meals just to get by. More money in people’s pockets means stronger high streets and better local economies."

With time ticking away, businesses are now left with only a few weeks to prepare for the incoming payroll adjustments, prompting experts to caution employers to ensure their workers receive the correct amounts.