The UK government is reportedly weighing a major boost to the National Living Wage, with discussions suggesting it could rise to £15 per hour in the near future. This move, if approved, would mark one of the most substantial wage hikes in recent years, offering relief to millions of low-income workers struggling with the soaring cost of living.
Why the Proposed Increase?
Sources indicate that the government is under pressure to address wage stagnation and inflation, which have left many households financially strained. A rise to £15 per hour would align closer with the Real Living Wage, a voluntary rate promoted by the Living Wage Foundation, currently set at £12 outside London and £13.15 in the capital.
Potential Impact on Workers and Businesses
For employees: A higher wage floor could significantly improve living standards, particularly for those in retail, hospitality, and care sectors. However, critics warn that businesses, especially small and medium-sized enterprises (SMEs), may face increased operational costs, potentially leading to job cuts or higher consumer prices.
For employers: While larger corporations may absorb the costs more easily, smaller firms could struggle, prompting calls for government support or phased implementation.
What Happens Next?
The proposal is still under review, with final decisions expected in the coming months. If approved, the increase would likely be introduced gradually to mitigate economic shocks.
Workers and business owners alike are advised to stay informed as developments unfold, with further announcements anticipated ahead of the next fiscal budget.
