Prime Minister Boris Johnson is expected to approve an increase in the minimum wage within a few weeks.
In his speech at the Conservative Party Conference today (Oct. 6), Johnson told delegates that he wanted to lead Britain towards a “high-wage, highly skilled and highly productive” economy.
However, the news came on the same day his government revoked the £ 20 covid hike on the universal loan – at over £ 1,000 a year – from recipients.
READ MORE: What is the National Minimum Wage? Labor conference motion for workers to pay £ 15 an hour
Johnson’s rumored plans to increase the minimum wage come soon after a major argument broke out at the Labor Party conference last month.
What is the national minimum wage?
The National Living Wage is currently £ 8.91 an hour for those aged 23 and over.
The national minimum wage for workers aged 21-22 is £ 8.36, while for workers aged 18-20 it is £ 6.56.
Under 18s are entitled to £ 4.62 an hour and apprentices £ 4.30.
Are the minimum wage and living wage the same?
The terms “national minimum wage” and “national subsistence level” are often used synonymously. However, National Living Wage is the name given to the minimum wage for those over the age of 23.
For people between school leaving age and 23 years of age, the lower national minimum wage rate for their respective age group applies.
Will the minimum wage rise in 2022?
According to reports, the UK government will increase the National Living Wage to £ 9.42 an hour – a 5% increase. The minimum wage increases on April 1st every year.
The Low Pay Commission, which will present its final proposals by the end of this month, announced earlier this year that it would recommend an increase to £ 9.42.
However, some in the Labor Party have tried to force their party’s leadership to raise the minimum to £ 15 an hour by the end of a future Labor government’s first term.
A corresponding motion was passed at the party congress last month.
Former Shadow Unemployment Secretary Andy MacDonald resigned during the Labor Conference, claiming Sir Keir Starmer directed him to argue against the proposal – which MacDonald supports.
Why was the minimum wage created?
The UK minimum wage was introduced to combat low wages – ensuring a minimum standard of living for all workers – and effectively setting a floor on wage rates.
It was only implemented in 1999 after the Labor Government passed the Minimum Wage Act the previous year.
Before 1998 there was no national minimum wage in the UK. However, sectoral minimum wages did apply, but these were gradually abolished until they were finally abolished in 1993.
The rapid decline in union membership in the 1980s and 1990s, which further weakened the bargaining power of low-wage workers, also led to the introduction of the national minimum wage.
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