Margaret Greenwood

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The National wage rises to 6. 2% of what the government says is "the largest cash increase ever".

The climb is More Than four times the rate of inflation and takes hourly rate for people over 25 to £8. 72 of April.

Prime Minister , Boris Johnson , said: "for too long, people have not seen the wage increases that they deserve. "

But the company warned that a sharp rise in wages would be the pressure on companies and urged the government to cut costs elsewhere for the company.

The National pay government-mandated minimum wage for the 25-year-old. The minimum wage for under-25s will also increase.

Hannah, of Essex, co-executive director of The British chambers of Commerce, said that many companies are "struggling with higher costs in a time of great economic uncertainty".

"raising the minimum wage, as far as the top of the stack will continue to put pressure on Cash Flow and eat into training and investment budgets," She Said .

"For this policy to be sustainable, must be compensated by the government for these costs by the reduction of the other. "

From April 2020, the new prices are:

this year, said it has little or no evidence of job cuts as a result of increasing the minimum wage, currently at £8. 21 for people aged 25 and over and £7. 70 for the 21-to 24-year-olds.

Professor Arindrajit Dube , a research scientist in the United States and an expert in this area, said it was "a space for the exploration of an ambitious national wage" in the UK in the coming years.

He stressed, however, that, because there is relatively little evidence available, The Independent Low Pay Commission should be able to check the impact on jobs as numbers increased.

Business rates

But The Federation of Small Businesses (FSB) said: "an increase of this magnitude," means that companies recruit may be less people cancel their investment plans or are considering redundancies.

"There is a danger, to defeat yourself, in this room," said Craig Beaumont, FSB Director of external affairs and representation of interests always exists.

"wage increases are not very good for the workers, if the prices are on The Rise , jobs are lost and there is no impact on productivity, because employers are forced to cut back on investment in tech, training and equipment. "

He said that small businesses need support, especially as 1. 7% increase in business rates in April next year.

The government also said that it is emphatically the recommendations of the Low Pay Commission, so that the workers Over 21 will receive The National wage up to the year 2024, when it comes to £10. 50 an hour.

Since The National minimum wage was by a Labour government 20 years ago, it is increased, the wages of the lowest paid to defy predictions that it would lead to higher unemployment.

After 2016, a rebranded National wage income increased more for low-paid workers are over 25. And in September, the government a recommendation from the Low Pay Commission accepts that the new, higher minimum requirements, should gradually be abolished for younger workers, the the 21.

The policy has contributed to The Number of people who are officially defined as low wages - those who earn less than 60% of the Average reducing income inequality.

Those on the minimum wage by 13% to earn more, in real terms, than in 2008.

But that has not prevented a rise in The Number of working households in poverty. And in the year 2019, the Average workers wage, and even less bought, after taking into account inflation, as 11 years previously.

the work has called for a £10 per hour minimum wage, and said the government had not gone far enough to help those on the lowest wages.

"This announcement falls short of what is necessary to help workers and created comes against the backdrop of an economy that has left by Conservative governments in the last ten years, millions of people trapped in low-paid, insecure work and under-payment of the minimum wage on The Rise ," said Shadow Work and pensions Secretary Margaret Greenwood .

Frances O'grady, General Secretary of the Trades Union Congress, said the workers needed a national wage of More Than £10 "Now , not in four years".

"This is a long-planned increase, but it is also long overdue. Workers are not getting a fair share of the wealth they create. And the poverty is increasing rapidly as millions of families struggle to make ends meet," She Said .

The Resolution Foundation, a Think Tank , which focuses on The Living conditions of low-and middle-income people, welcomed The Plan , but his economic analyst, Nye Cominetti, said it was "not free of risks" in terms of inflation.

He said: "It should be complemented by a renewed commitment to quickly in the evaluation of the evidence, which increases the impact of such a large and sustainable minimum wage, and then to act on that evidence to show up if there are problems. "

The Living wage Foundation is calculated in a separate, non-binding wage level, which describes it as a fair salary, what is the cost of living. Around 6,000 British employers paid these volunteers the "real wage" of £9. 30, or £10. 75 for those in London .

uk living wage, uk economy, pay, federation of small businesses (scotland)

Source of news: bbc.com