The national living wage could increase by as much as 65p an hour next year, a UK advisory body has predicted. The terms of its annual review of wage rates had been published.
Britain’s minimum wage rate is likely to rise 4.1% next year to 12.71 pounds an hour to align with the government’s goal for it to match two-thirds of median earnings. The UK body sets the rate of the minimum wage, said on Tuesday.
The UK’s minimum wage has risen steadily in the past few years. The rate has increased by 6.7% in April to 12.21 pounds an hour. In the previous year, it was the second highest in Europe after France, as the OECD data shows.
Ministers are determined to provide “a genuine living wage” as per the Low Pay Commission’s latest report remit for raising the national living wage. At present, the national living wage is £12.21 an hour for workers aged 21 and older.
The UK’s minimum wage is set by the government each year based on a recommendation from the Low Pay Commission. LPS is a government-appointed body that includes representatives from employers, academia, and trade unions.
Approximately 6.5% of the British workers receive the minimum wage, and a significant number receive slightly more. A trade body of the UK’s hospitality industry said that rising employment costs led to reduced hours for workers.
UK Hospitality chair Kate Nicholls said that any significant wage hike may cost jobs. The spokesperson further added that they urge the Low Pay Commission to recognise those cost pressures and recommend a more gradual and sustainable increase this year.
On Tuesday, the UK government provided guidelines to the commission on the factors it should consider, with little change from the previous year.
In May, the commission anticipated that the minimum wage for employees aged 21 and over would rise by 3.6% next year.