UK Chancellor Rishi Sunak announced a raise in the National Living Wage and the Minimum Wage yesterday (25 November).
He added that the Government has given its approval to the recommendation from the Low Pay Commission.
As per the recommendation, the National Living Wage will be increased by 2.2 per cent to £8.91 an hour. The new wage will be effective from 2021. Reportedly, it will also be extended to all aged 23 and above.
The current National Living Wage is £8.72 an hour.
The Chancellor also said that there would be increase in the Minimum Wage, but did not specify the increase.
Rishi also said ‘economic emergency’ caused by the pandemic has just begun and will have a lasting impact on every industry in the country and added that unemployment rate will hit 7.5 per cent in the second quarter of next year – highest since 2009 economic crisis.
The second lockdown in England as well as extended lockdowns in Ireland have already put a significant dent in the UK retail, with apparel and footwear retail, reportedly, seeing sales 14 per cent below January levels.
With increase in the National Living Wage, at least there is something to cheer for the low-paid workers in these tough times.