Minimum wage rise reported: Chancellor expected to lift rate to £13.20 in Budget
Chancellor John Healey is expected to announce an “inflation-busting” minimum wage increase in the Budget on Wednesday 28 October, according to reports first published by The Times. The government has yet to confirm the figures, and everything reported so far remains unconfirmed.
What is reported
Reports say the National Living Wage for workers aged 21 and over would rise by 3.9% from £12.71 to £13.20 an hour from next April, taking it above £13 an hour for the first time. The lower rate for 18 to 20-year-olds is also reported to rise by 3.9%, from £10.85 to £11.27 an hour.
The Times reports that the Chancellor will confirm at the Budget that he has accepted the recommendations of the Low Pay Commission, the independent body that advises the government on minimum wage rates. Drapers reports that it has approached the Treasury for comment.
Reaction and what happens next
Employers have previously warned that steep minimum wage rises are hindering efforts to bring young people who are not in employment, education or training into work, Drapers reports.
The Times also reports that the move would end a manifesto pledge on aligning minimum wage rates within this parliament, although that too remains a reported claim rather than a confirmed announcement.
Until the Chancellor speaks on 28 October, the 3.9% rise and the new rates should be treated as reported, not announced. Confirmation, if it comes, will be in the Budget itself.
