Chancellor John Healey has confirmed that the National Minimum Wage and National Living Wage will rise by 3.9% from next April, taking the hourly rate from £12.71 to £13.20 for adults aged 21 and over. The change, announced in today's Budget, means a 49p increase for low-paid workers.
Speaking in the House of Commons, Mr Healey said: "For 2.3 million of our lowest paid workers, I am increasing both the National Minimum Wage and the National Living Wage by 3.9%."
Wider cost of living measures
The wage rise is part of a series of "everyday fixes" aimed at easing the cost of living crisis. The Chancellor also announced changes to carer's allowance, fuel rates and parental pay.
He confirmed the 55p per mile rate for the first 10,000 business miles would be locked in, with the rate above 10,000 miles increasing from 25p to 35p per mile. This is expected to support around three million employees and self-employed people who use their own vehicle for work.
Tariffs and rough sleeping support
The government will also remove import tariffs on more than 100 products, which is intended to lower costs on items including baked beans and chocolate, while supporting farmers facing higher fertiliser bills and households relying on kerosene heating oil. Together with existing tariff suspensions, households could save up to £21 on their food shop each year.
Mr Healey also discussed changes to rough sleeping, backing Prime Minister Andy Burnham's campaign to ensure rough sleepers find a way off the street before Christmas. Support will be extended beyond March 2027 and through to the end of this Parliament, taking total investment behind the commitment to £874 million.
