**Minimum Wage Rises To £12.21 In 2024 Budget**

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Post on Oct 30, 2024

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Minimum Wage Rises to £12.21 in 2024 Budget: What You Need to Know

The 2024 Budget has brought good news for millions of workers across the UK, with the National Living Wage (NLW) set to increase to £12.21 per hour for those aged 23 and over. This represents a significant rise from the current rate of £10.42, and is a key measure announced by the Chancellor to support workers and boost the economy.

Key Highlights of the Minimum Wage Increase:

• National Living Wage: For workers aged 23 and over, the NLW will increase to £12.21 per hour, a rise of almost 17% from the current rate.
• National Minimum Wage: The hourly rate for those aged 21-22 will increase to £10.90, those aged 18-20 to £7.49, and those aged 16-17 to £5.28. Apprentices will see an increase to £5.28 per hour.
• Impact on Employers: The rise in minimum wage will undoubtedly impact employers, who will need to adjust their budgets and wage structures to accommodate the new rates.
• Benefits for Workers: The increase in minimum wage is intended to provide much-needed financial support to workers, particularly those on lower incomes, and could potentially boost consumer spending.

Who Benefits from the Increased Minimum Wage?

This increase will directly benefit millions of workers across the UK, especially those in sectors like retail, hospitality, and care. The rise in the NLW is expected to particularly benefit those who are juggling work and family commitments.

Potential Implications of the Minimum Wage Increase:

The increase in minimum wage is a significant policy decision with potentially far-reaching effects. While it's expected to have a positive impact on workers' incomes and consumer spending, there are also potential downsides to consider:

• Increased Costs for Businesses: The higher minimum wage may lead to increased costs for businesses, potentially impacting profitability and leading to job losses.
• Price Increases: Some businesses may pass on the added cost of increased wages to consumers through higher prices.
• Impact on Small Businesses: The impact of the higher minimum wage may be particularly felt by small businesses with tighter margins.

Looking Ahead:

The 2024 Budget's focus on boosting the minimum wage is a clear indication of the government's commitment to supporting workers. The long-term implications of the policy remain to be seen, but it is sure to spark a debate about the role of the minimum wage in shaping the UK's economic landscape.

This article provides an overview of the minimum wage increase announced in the 2024 Budget. For further information, you can consult official government resources and financial news outlets.

Remember to share this article with your friends and family to help spread the word about this important change.