Necessary boost for the economy.
According to the government this significant boost will support and increase the living standards of the low-paid workers across the country as well as keep up with an increasing rate of inflation.
However according to Labour’s shadow chief secretary this raise will most likely be absorbed by the higher energy prices, removal of £20 uplift to the Universal Credit and an increased 1.25% levy contributions towards health and social care.
New Rates of Pay
The new rates of pay are applicable from April 1st 2022.
- National Living Wage for over-23s: From £8.91 to £9.50 an hour
- National Minimum Wage for those aged 21-22: From £8.36 to £9.18
- National Minimum Wage for 18 to 20-year-olds: From £6.56 to £6.83
- National Minimum Wage for under-18s: From £4.62 to £4.81
- The Apprentice Rate: From £4.30 to £4.81
This represents a 6.6% increase of minimum pay across the country and is justified by strong GDP predictions by the government, a record number of vacancies and strong economic recovery from the pandemic. The sharp increase is set to fulfill the government promise of moving onto the ‘’high-skill, high-pay, high-productivity’’ economy.
However certain sectors such as hospitality argue that this increase will most likely be passed onto their customers due to the increased costs such as higher national insurance contributions and rising business rates.
The sharp increase might also accelerate the current labour shortage within the hospitality sector. This change will likely impact the offered wages within other industries with a labour shortage, increasing them even further.
Here at Industrial Work Solutions you can find a number of vacancies within the Industrial, Technical, Engineering and Administrative sectors.
Contact us today or visit our vacancies page for more information!