National living wage to rise in the UK as part of the autumn Budget.
According to reports, the government is set to raise the National living wage. Chancellor Rishi Sunak is expected to increase the minimum hourly rate for people aged 23 years and over.
Reportedly the new living wage will be £9.50 an hour. The change is expected to come in the autumn budget.
The new wage for those aged 23 and over is a 6.6 per cent rise. The previous minimum wage for this age group was £8.91.
Workers will be happy to receive a pay increase. However, inflation could soon eat into the enhanced earnings. The chief economist for the Bank of England has warned that inflation could hit 5 per cent in the New Year.
The increase would see people on the National living wage gain an extra £1,070 a year in earnings before tax. Broken down by month, this only amounts to £90.
The inflation rate in the UK is currently at 3.1 per cent.
The National living wage had been expected to come in at £9.42. Officials confirmed to the BBC that it will now come in at £9.50.
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