Prices of daily essentials, house rent, fuel prices are on the rise in Britain. Even if the salary increases with this, the increased salary is not able to cover the increased cost of living of the common people. The Bangladeshi community, like other ethnic minority communities in Britain, has a large minimum wage workforce. Immigrants on student visas and work permits also work for lower wages.
The National Living Wage could reach £11.46 an hour next year – much higher than the government has announced.
The minimum wage for adults over 23 is tied to the average hourly wage – and a stronger-than-expected pay rise means April’s rise could exceed £11 an hour that the prime minister proposed recently.
Average weekly wages rose 7.8% in the three months to August, which think tank the Resolution Foundation said could lead to a £1.04 increase in the national living wage UK, up from £10 currently.
Nye Cominetti, senior economist at the Resolution Foundation, said: “The chancellor has announced that the national living wage would rise to at least £11 an hour next April.
“This looks to be a rare case of a politician underpromising, as the actual rate is more likely to be around £11.46. This would be a huge pay increase that will help millions of low earners as they navigate the cost of living crisis.
“However, a higher minimum wage alone cannot deliver higher living standards for everyone. Over the past decade, cuts to working-age benefits have offset the gains from the national living wage for many.
“Low-paid families with children in receipt of benefits will have experienced next to no, or even negative, income growth over this period, despite their hourly pay rising by 27% in real terms.
“A strategy to boost the living standards of low earners must combine a higher minimum wage with better conditions at work and a stronger social security safety net as well.”
The Resolution Foundation said around 1.7 million workers directly benefit from the increase in the National Living Wage – and it would be the third largest annual increase in percentage terms.
The Government has committed to accepting the Low Pay Commission’s recommendations on a national living wage and the April increase will be confirmed later this month.