Gov confirms 3.9% rise in wages during Budget

Andy Burnham and John Healey
Wages rise: Andy Burnham and John Healey (UK Parliament)

Chancellor John Healey confirmed reports from earlier in the week that living and minimum wages will rise across the UK during his Autumn Budget speech.

However, the rises in both the national living wage (NLW) and national minimum wage (NMW) have slowed from increases made during the past few years.

The NLW, which is set for workers aged 21 and over, will go up from £12.71 to £13.20 an hour from April 2027, which marks a 3.9% uptick.

Meanwhile, the NMW for 18 to 20-year-olds will also increase by 3.9%, from £10.85 to £11.27.

‘For 2.3m on low pay’

The expected move that The Morning Advertiser wrote about yesterday (Tuesday 27 October) has ended Labour’s manifesto pledge to bring the minimum wage for younger workers into line with the national living wage during this parliament.

Healey told the House of Commons today (Wednesday 28 October): “For 2.3m of our lowest-paid workers, I’m increasing both the national minimum wage and the national living wage by 3.9%.”

Prior to Healey’s Autumn Budget, Prime Minister Andy Burnham was quizzed on devolved powers to mayors in England and how they could be taken on in Wales and Scotland.

During Prime Minister’s Questions, Burnham said: “I am ready to make a similar offer to Wales as I recently made to the first minister of Scotland, and I will do so on Friday (30 October). I am glad to hear her commitment to pushing power down in deeper devolution, particularly.

Greater devolution

“What I will put on the table is an offer of greater devolution of employment support, so that we can have a different approach to supporting people in communities towards getting back to work and supporting the economy. That’s the starting point. There will be more to come too.”

Yesterday, UKHospitality (UKH) chief executive Allen Simpson told The MA: “There were well-placed rumours that the rate could be as high as 5.5%. The fact the Government have listened to concerns about the impact on jobs is good news.”

The British Institute of Innkeeping (BII) told The MA at the same time: “The policy intent of putting more money in working people’s pockets will instead have the opposite effect, forcing employers to reduce hours, shifts and inevitably, jobs.”