**UK Budget: Minimum Wage Boost To £12.21/Hour**

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Post on Oct 30, 2024

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UK Budget: A Minimum Wage Boost and Other Key Announcements

The UK Chancellor of the Exchequer, Jeremy Hunt, unveiled his Spring Budget on March 15, 2023, outlining the government's economic plans for the year ahead. While the budget addressed a range of issues, from the cost of living crisis to the NHS, one of the most significant announcements was a substantial increase to the national minimum wage.

Minimum Wage Boost: A Step Towards Higher Living Standards

The National Living Wage, applicable to those aged 23 and over, will be increased to £10.41 per hour from April 1st, 2023. This represents a 9.7% rise from the current rate of £9.50 per hour, marking the biggest increase since its introduction in 2016.

Furthermore, the Chancellor also announced a £12.21 per hour minimum wage for those aged 25 and over starting in April 2024. This move aims to further support workers and contribute to a more balanced and sustainable economy.

Other Key Highlights from the Budget:

1. Cost of Living Support: The budget included a number of measures aimed at tackling the ongoing cost of living crisis. This included extending the energy price guarantee for an additional three months, providing some respite from rising energy bills.

2. Tax Changes: The Chancellor announced several tax changes, including a freeze on fuel duty for another year, a decrease in the rate of income tax for higher earners, and a rise in the threshold at which National Insurance contributions become payable. These changes aim to offer some financial relief for households and businesses.

3. Public Sector Spending: The budget allocated significant funding towards public sector projects, including the NHS, education, and infrastructure. This focus on public investment aims to boost economic growth and support essential services.

4. Business Support: The budget included measures to support businesses, including a reduction in corporation tax and further investment in infrastructure projects. These initiatives are intended to stimulate investment and create new opportunities for businesses.

The Budget's Impact:

The budget's announcement of a substantial increase to the minimum wage has been met with mixed reactions. While many have welcomed the move as a step towards addressing low pay and improving living standards, some argue that the increase is not enough to keep pace with rising inflation.

It remains to be seen how the budget will affect the UK economy in the long term. However, the increase in the minimum wage is a significant development that could have a positive impact on the lives of millions of workers across the country.