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Minimum Wage Hike: Young Workers See Biggest Boost
27 Nov
Summary
- Eighteen to 20-year-olds will receive the largest minimum wage increase.
- The government aims to align minimum wages for younger and older workers.
- Businesses express concerns about potential price hikes and hiring freezes.
Effective from April, a notable increase in minimum wages is anticipated, with individuals aged 18 to 20 slated to receive the most substantial pay uplift. Their hourly wage will rise by 85p, reaching £10.85. Concurrently, those under 18 and apprentices will see a 45p increase to £8 per hour, while workers over 21 will gain 50p, bringing their hourly rate to £12.71. Approximately 2.7 million individuals are expected to benefit from these adjustments.
The government's broader objective behind these changes is to harmonize the minimum wage standards for 18 to 20-year-olds with those of workers aged 21 and above. This initiative seeks to create a more equitable wage structure across different age groups within the workforce, addressing previous disparities.
Despite the intended benefits, the business sector has raised concerns regarding the potential repercussions of these wage hikes. Industry representatives have cautioned that the increases might necessitate higher prices for goods and services and could potentially result in a freeze on new hiring, impacting overall employment opportunities.
