More than 3,000 workers in Gedling borough will receive a pay boost next year after the Chancellor confirmed the National Living Wage will increase from £11.44 to £12.21 an hour from April 2025.
The 6.7% increase is worth £1,400 a year for an eligible full-time worker.
The move aligns with the government’s commitment to make sure the minimum wage is a genuine living wage.
A pay boost is also planned for younger workers with the national minimum wage for 18 to 20-year-olds rising from £8.60 to £10.00 an hour – the largest increase in the rate on record.
This £1.40 increase will mean full-time younger workers eligible for the rate will see their pay boosted by £2,500 next year.
Labour said this marks the first step towards aligning the National Minimum Wage and National Living Wage to create a single adult wage rate, which would take place over time.
Figures show that up to 3,100 workers will benefit from the national living wage rise across Gedling borough.
Chancellor of the Exchequer Rachel Reeves said: “This Government promised a genuine living wage for working people. This pay boost for millions of workers is a significant step towards delivering on that promise.”
Business Secretary, Jonathan Reynolds said: “Good work and fair wages are in the interest of British business as much as British workers.
“This government is changing people’s lives for the better because we know that investing in the workforce leads to better productivity, better resilience and ultimately a stronger economy primed for growth.”
But employers’ groups have expressed unease about the increase.
Kate Nicholls, chief executive of UKHospitality, said: “Trying to balance the books from the pockets of high street businesses will simply leave hospitality as collateral damage – threatening jobs, future investment, price increases for consumers, and business viability.”
Kate Shoesmith, deputy chief executive of the Recruitment and Employment Confederation, said: “Businesses have set out to us and the government their concerns over their ability to continue to operate if there are further substantial increases to their cost base in the short-term – and very little on the horizon that points towards growth.”
Shame cannot give pensioners more in their packet eh?