Business backlash as Reeves confirms minimum wage pay rise hike for millions of workers
How much is the current minimum wage and what is it rising to?
- The Chancellor announced significant increases to the minimum wage, including an 8.5 per cent rise for 18-20 year olds from £10 per hour to £10.85 and a 4.1 per cent rise for those aged 21 and over from £12.21 to £12.71 per hour.
- This move, set to benefit approximately 2.7 million workers, aims to properly reward low-income individuals and is expected to increase pay by £900 annually for those over 21.
- Business leaders, including the Institute of Directors and the CBI, warned that the inflation-busting wage hike could lead to increased unemployment, particularly among young people, and hinder economic growth due to rising labour costs.
- Trade unions, such as the TUC and Youth Employment UK, welcomed the pay rise, stating it would make a real difference to the lowest-paid workers.
- The decision follows recommendations from the Low Pay Commission, which concluded that previous minimum wage increases have not had a significant negative impact on jobs.