THE exact date for when millions of workers will get a bumper pay rise when the National Living Wage has been revealed.
The government’s advisory body on minimum wages, the Low Pay Commission (LPC), has declared its intention to increase the statutory amount to £12.10 per hour.
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The National Living Wage, currently set at £11.44 per hour, is paid to those who are over 21.
In order to keep up with rising costs, minimum pay levels typically increase annually.
The rate rose 10% from £10.42 in April of this year, and in previous years it has generally increased faster than inflation.
Deputy Prime Minister Angela Rayner promised to “raise the floor on wages,” but Labour wants to go further.
Following their election, Rayner and Business Secretary Jonathan Reynolds directed the LPC to suggest a rise that would cover living expenses and guarantee that the national living wage would not fall below two-thirds of median income.
The LPC has responded by stating that, in order to match earnings growth, salaries would need to increase by roughly 5.8%, which is a substantial increase from their estimate of 3.9% from March.
This indicates that starting in April 2025, the National Living Wage is projected to increase from £11.44 to £12.10 per hour.
According to the LPC, their suggestions would now include a “floor” of two-thirds of median earnings.
But they pointed out that if earnings growth in 2024 is more robust than anticipated, their current projection may increase even further.
Typically, the government’s Autumn Statement reveals the amount of the National Living Wage increase.
This will take place on Wednesday, October 30.
A spokesperson for the Department for Business and Trade (DBT) said: “We are changing the rules to put more money in working people’s pockets.
“But we have also been clear we need to consider the businesses who pay these wages, employment prospects and the impact on the wider economy, which is what we instructed the Low Pay Commission to do.
“We believe a hard day’s work deserves a fair day’s pay and that’s exactly what our Make Work Pay plans will do, working in conjunction with business.”
At the same time, the government is looking to further shake up the minimum wage rates by introducing a “genuine” living wage by removing age bands for the statutory rate.
It means that those aged 18 and over will eventually be paid the same minimum wage.
However, the DBT hasn’t confirmed when this change will likely come into effect.
Six ways to land a pay rise to ease pressures of cost-of-living crisis
by Leah Milner
A PAY rise would be just the thing to ease pressures from the cost of living crisis.
Moneysavingexpert.com recently found in a poll that 38 per cent of its respondents had successfully asked for a raise.
Here, Abby Robbins, who is founder of recruitment agency yellowbricks.co.uk, has advice on how to do the same . . .
ASK TO RECEIVE: It’s a good idea to get into the habit of asking your colleagues and managers for feedback. This will build your confidence and allow you to show others in the business how important you are to the company.
PREP AHEAD: Think about the words you will use and write down the reasons why paying you more could benefit the business. Think about the objections you might receive and write down counter arguments.
Take a pad and pen to the meeting and note down anything they say.
TIME IT RIGHT: The best time to ask is when you have recently completed a “high-impact task” or where you had praise. During a one-to-one or an appraisal is good, or you could ask for time to have a word privately.
FACE OFF: Getting some face-to-face time will have more impact, and you can see how you are being received.
If you choose to write an email, be clear about what you are asking for in the introduction.
Then add strong work-based examples about to why you deserve it.
End it by stating you feel confident that your manager understands your position.
TRACK YOUR TASKS: Keep a diary or notes on your phone of those “above and beyond” moments where the business or the team was improved by your actions. You will be surprised how quickly you forget these “wow” moments.
HAVE A PLAN: If it is a flat no, then ask your manager to explain why. Remain calm and don’t leave the conversation without having an action plan: What will need to happen for you to get the pay rise? Get your manager to set practical objectives to help.
