Minimum wage rise still ‘substantial gap’ away from North East reality

The National Living Wage in the UK will go up to £9.50 an hour from next April.

The change, announced by the Chancellor of the Exchequer during the Budget on Wednesday, will mean a pay rise for millions of low-wage workers in the country.

The rise applies to workers over 23 years old and is an increase from £8.91 an hour.

All in all, that adds up to an extra £1,074 a year for a full-time worker, before tax.

The 6.6% rise more than doubles the rate at which the price of living is climbing, at 3.1%.

However, some charities are pointing out that a "substantial gap" remains between the new government amount and research into the cost of living.

Church Action on Poverty is a nationwide group that aims "to build a movement that can loosen the grip of poverty in the UK".

The group has projects in the North East and the region-specific branch meets regularly in the Newcastle city centre.

Liam Purcell, Communications and Supporter Relations Manager, said: "The rise in the National Living Wage is a positive step for so many workers who have been working hard and struggling to make ends meet.

"This significant increase will go some way to easing the pressure on households feeling the squeeze, but there is still a substantial gap between the government’s 2022 rate and the rising cost of living.

"On 15 November, the new real Living Wage rates will be announced and take effect to reflect the steep rise in living costs.

"The real Living Wage remains the only rate that’s based on what workers and their families need to get by: the weekly shop, energy bills, a school uniform for growing kids; even a trip to the dentist.

"The rates are calculated every year based on the best available evidence on living standards in the UK.

"It applies to all workers over 18 – in recognition that young people face the same living cost as everyone else.

"The annual rate announcement in November will see more than 300,000 people get a vital pay boost to a wage which is significantly higher than the so-called National Living Wage, providing hundreds of thousands of workers with the security and stability they need.

"All the UK’s major Churches, and many other employers, have already committed to pay the real Living Wage. If we're to recover and rebuild over the coming months and years, we'll need to see more employers commit to go beyond the government minimum, do the right thing now, and commit to pay a real Living Wage."

The last Living Wage figures for Newcastle were recorded at £9.50 per hour, which matches the government's rate for next year.

However, as Mr Purcell points out, it is just a couple of weeks before the Living Wage's figure will rise above the government's new sum.