Minimum Wage to Rise in April

Woman Putting Coin In Piggy Bank, Indoors

Minimum Wage to Rise in April

With inflation reaching levels not seen for decades, the government has been under significant pressure to ensure that the least well off in society are able to cope. In addition to raising both the state pension and working age benefits in line with rising prices, it has also been decided to increase the minimum wage significantly from next April, bringing the amount due to over 23s above £10 an hour for the first time. The increase will mean those currently earning £9.50 an hour will see their pay upped 9.7% to £10.42. 

An inflationary cycle such as this one is always very challenging for businesses and the childcare sector is no exception. Although pretty much every provider would agree that their staff deserve to be paid more, ongoing funding difficulties, paired with today’s troubling economic circumstances mean this new raise is likely to cause many businesses difficulty. This goes not only in the regulated sector, but for children’s activity providers and indoor play centres who are also struggling against rising costs. As a result many businesses expect to be forced to raise their prices to keep up.

On the other hand, the rising costs of day to day life are as much a reality for staff as for businesses, and with food and fuel bills alone reaching record highs, an increased salary will be welcomed by many. For staff already paid more than the minimum wage however, may find it harder to secure pay rises, leading to tense negotiations.

All Morton Michel policy holders have access to PIB’s Employment Benefits Hub. In times when every penny counts, it may be worth making sure your staff are aware of these benefits, which include discounts on groceries from high street shops.