Will the Increase in National Minimum Wage Be Enough
As of April 2022, there has been an increase in the national minimum wage. As of the 1st of April, the minimum wage for those 23 years old and over increased to £9.50, up from £8.91, meaning that an average full-time worker can expect to receive an extra £800 a year. This is the largest ever increase to minimum wage and was made in an effort to increase income due to the ever-increasing living costs that we are all facing.
Key Information
Not only is minimum wage on the rise, but so is inflation. The Consumer Price Index for Urban Consumers (CPI-U) increased by 1.2% in March, up from 0.8% in February. This is a massive jump just from one month to the next and is the biggest month-to-month increase ever seen since 1981.
The key drivers for the increase are the price of gasoline, energy, electricity, and transport services. Rising gas prices accounted for more than half of the increase, and it is set to continue to rise. Unsurprisingly this is causing a lot of stress and worry for all – especially those that work in sectors that have not seen a pay increase in recent years, such as the care sector or civil service.
Is it Enough?
United voices of the world (UVM) asked members of the new £9.50 was enough to live on. 100% of the people asked said that it was not enough for them to live on, with 89% of people saying that they are actually finding it harder than ever before to afford essentials, such as food, clothing, and rent. The national living wage is still below the recommended living wage for UK workers, as many have to choose between paying for heating or paying for food.
Not only is this inevitably going to have a negative effect on people’s physical health, but there is also going to be a rise in mental health concerns as people become overworked to make ends meet. Many people are seeing this as the largest decline in accessible UK living standards that they have ever known.
There are a few things that can be done to live more comfortably, such as purchasing a careers card if you are eligible, receiving discounts and cashback at supermarkets and shops, and making your money stretch that little bit further.
Other ways to save money include shopping in the discount and reduced section to make your food shop more affordable. Buying little and often can mean that less food goes to waste. Make sure that you are aware of how much heating and electricity you are using to help further cut down bills.
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