Budget 2024: Minimum wage to rise to £12.21 an hour next year

Published On Oct 29, 2024, 2:00 PM

The UK government will increase the National Living Wage to £12.21 an hour starting in April 2025, marking a 6.7% rise. Other minimum wages for younger workers and apprentices will also see significant hikes. While this change is viewed positively for low earners, businesses, particularly in hospitality, are concerned about rising costs potentially leading to fewer hires and increased consumer prices. There are fears that these changes, combined with expected tax increases, could harm business viability and economic growth.

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The rising minimum wage can lead to increased costs for businesses, which may cut back on hiring and investment due to tighter margins. This could weigh negatively on economic growth. Hospitality sectors notably feel the pressure, leading to concerns about future profitability.

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