The impact of COVID-19 may have left Britain unable to afford a planned increase to the national living wage, reporting by The Telegraph has revealed. A discussion has arisen among ministers and officials about the possibility of putting an "emergency brake" on the minimum pay rate, expected to increase in April from £8.72 to £9.21 per hour. Chancellor Rishi Sunak would announce the change in the autumn budget.
Mr Sunak set a target intended to achieve a wage rate increase to the equivalent of two-thirds of the nation's median earnings by 2024. However, members of the Low Pay Commission the body which advises the Chancellor on annual increases to the rate - believe that April increase could now prove unaffordable for many companies and lead to increased unemployment. The commission could throw the brake if evidence shows that planned rises would be "damaging for the lowest-paid workers". The Telegraph reports further details of the panel’s warning and the options under discussion.The impact of COVID-19 may have left Britain unable to afford a planned increase to the national living wage, reporting by The Telegraph has revealed. A discussion has arisen among ministers and officials about the possibility of putting an "emergency brake" on the minimum pay rate, expected to increase in April from £8.72 to £9.21 per hour. Chancellor Rishi Sunak would announce the change in the autumn budget.
Mr Sunak set a target intended to achieve a wage rate increase to the equivalent of two-thirds of the nation's median earnings by 2024. However, members of the Low Pay Commission the body which advises the Chancellor on annual increases to the rate - believe that April increase could now prove unaffordable for many companies and lead to increased unemployment. The commission could throw the brake if evidence shows that planned rises would be "damaging for the lowest-paid workers". The Telegraph reports further details of the panel’s warning and the options under discussion.