Rachel Reeves’ Spring Statement to Unveil Game-Changing National Living Wage Boost

From April 1, millions of workers across the UK are set to see a bit more cash in their pay packets, thanks to a bump in the National Living Wage. It’s one of the headline policies rolled out by Chancellor Rachel Reeves during her Autumn Budget, and it means full-time workers on the National Living Wage will pocket an extra £1,400 a year. That’s roughly £100 more each month — not exactly life-changing, but a welcome boost with bills still biting hard.

Those on the National Minimum Wage could see an even bigger boost, with some expected to gain as much as £2,500 a year. A Cabinet Office spokesperson called the move “another step towards creating a genuine living wage that supports millions of families across the country.” And in theory, it’s a solid win for workers feeling the pressure from rising food costs, rent hikes, and energy bills.

But while the increase sounds great on paper, not everyone’s celebrating. Businesses have been quick to flag the other side of the coin, particularly the impact of the Employer National Insurance rise that’s also set to kick in next month. When combined with the wage hike, some employers say they’re being squeezed from both sides and might be forced to halt new hires or even lay people off just to keep things afloat, reported the Express.

There’s been a growing chorus asking the Chancellor to throw businesses a lifeline in her upcoming Spring Statement on March 26, but so far, there’s no sign of that happening. Hopes for tax cuts or relief seem to be off the table, and instead, Rachel Reeves is expected to announce hefty spending cuts to try and steady the government’s finances.

This comes after the Office for Budget Responsibility (OBR) revealed that sluggish economic growth and sky-high borrowing costs have basically wiped out the government’s £9.9 billion budget cushion. So, with the pressure mounting, the Chancellor’s options are looking pretty limited.

For now, workers on lower incomes can look forward to that bit of extra money each month. But with businesses warning of tough choices ahead, it’s shaping up to be another delicate balancing act between helping families and keeping jobs secure. All eyes will be on the Spring Statement this week to see how it all plays out.