Chancellor announces significant National Living Wage increase
The Chancellor will give her Spring Statement at noon on Wednesday. People across the UK are set to receive a pay increase due to a rise in the National Living Wage, starting April 1. This increase will add about £1,400 a year for eligible full-time workers. That’s roughly £25 a week or £100 a month. Workers earning the National Minimum Wage could see an even bigger boost, up to £2,500 a year. A government spokesperson said this change aims to help millions of families. However, some businesses are concerned. They worry that the pay increase, along with a rise in Employer National Insurance, could force them to freeze hiring or lay off staff. Many are hoping for relief during the Chancellor’s speech on March 26. Yet, significant tax increases are not expected. Instead, the Chancellor is likely to announce spending cuts to manage the budget. Recent reports show that high borrowing costs and low growth have reduced the government's financial flexibility.