In the UK, the minimum wage rises by almost 10%, a record

The minimum wage will increase on April 1 by 9.7% in the United Kingdom, a “record” boost for the most modest in a country that has been seeing inflation soar above 10% for months, the British authorities indicated this Friday. .

This is “the largest increase in value” – without taking inflation into account – since the creation in 2016 of the minimum wage in its current form, the LPC, a government agency, specifies in its press release.

“High levels of inflation are felt most hard by low-wage workers, who spend a higher proportion of their income on energy and food,” said Bryan Sanderson, chairman of the Low Pay Commission (LPC).

The minimum wage per hour for those over 23 years of age increases to 10.42 pounds (11.84 euros), then it is reduced for the youngest.

1.7 million workers affected

“About 1.7 million workers are expected to directly benefit” from this increase, and “an additional five million low-paid workers could benefit from the consequences, as employers seek to maintain pay gaps” within companies, estimates the Resolution Foundation think tank in a press release.

The UK government’s aim is to see the minimum wage reach two-thirds of Britain’s median income by 2024, which means further wage increases next year, the LPC said.

The UK is facing a severe cost of living crisis, with inflation picking up to 10.4% yoy in February. The price increases are driven by rising energy bills, but also food, following the war in Ukraine, not to mention the shortage of workers after the pandemic and Brexit.

Consequence: despite the wage increases, the purchasing power of the British is reduced and strikes for better income are linked in many sectors, from education to transport, passing through health.

Official projections from the OBR, the public budget forecasting body, see inflation in the UK falling below 10% in the first quarter and below 7% in the second.

If confirmed, ‘the scale of the ‘minimum wage’ increase means the lowest-paid workers in the UK will benefit from an exceptional pay increase in real terms, notes the Resolution Foundation.