In a significant move, the government has raised the minimum wage, known as the National Living Wage, by over £1 for the first time, providing a much-needed boost for 2.7 million low-paid

workers.

Effective immediately, the main wage rate is climbing from £10.42 to £11.44 per hour and will now apply to workers over the age of 21, instead of 23. Additionally, younger workers will also witness an increase in their respective wage rates.

However, some businesses express concerns regarding the higher labor costs, fearing it might pose challenges in maintaining competitive pricing.

Here are the key changes:

- A full-time adult worker earning the minimum wage will experience a pay rise amounting to £1,800 annually.

- A 21-year-old transitioning from the lower minimum wage rate to the main rate will see a £2,300 increase.

- The minimum wage for 18 to 20-year-olds will surge from £7.49 to £8.60 per hour.

- Apprentices will receive an above-inflation rise, with hourly pay jumping by more than 20%, from £5.28 to £6.40.

Samuel, an employee at Grindsmith coffee house in Salford, is among those who will directly benefit from this increase. Before the wage hike, Samuel often found himself financially stretched after covering rent and bills, struggling to make ends meet. He believes the raise will help him afford more than just the essentials and alleviate some of the financial pressure caused by rising prices.

The government's decision to increase the minimum wage stems from recommendations by the Low Pay Commission, which responded to the growing cost of living by proposing a substantial rise in the minimum wage.

While this move marks progress toward the Conservative party's goal of "ending low pay" by lifting the minimum wage to two-thirds of average earnings, some employers, like Peter Gibson, director and co-founder of Grindsmith, express concerns. Gibson highlights the strain on businesses due to rising wage costs, necessitating adjustments such as boosting wages for other staff members to maintain differentials.

To cope with the increased costs, companies like Grindsmith may consider implementing price hikes or reducing staff hours. While acknowledging the challenges faced by businesses, Business and Trade Minister Kevin Hollinrake emphasizes the positive impact on millions of workers.

The Resolution Foundation views the minimum wage increase as a significant step, reducing pay inequality and marking one of the most successful economic policies in recent history.