The decision, which is expected to form part of the Chancellor's Autumn Statement later this week, will represent a rise of nearly 10% and benefit 2.5 million people, although one Government source has suggested to The Times that the rise could be even higher.
In May this year UK employers who have committed to paying the voluntary ‘real living wage’ were urged to bring forward a planned rise for November by two months, in the face of soaring inflation.
While the Trades Union Congress (TUC) recently called for the minimal wage to rise to £15 per hour in order aid low-income workers amid the cost of living crisis.
“Millions of low-paid workers live wage packet to wage packet, struggling to get by – and they are now being pushed to the brink by eye-watering bills and soaring prices,” Frances O’Grady, the general secretary of the TUC, was quoted as saying at the time.
“For too long workers have been told that businesses can’t afford to pay them more. But again and again the evidence has shown that firms are still making profits and increasing jobs – we can afford higher wages.”
Several major hospitality companies have implemented pay rises for their staff in recent months, with Itsu announcing a 13% rise for all staff in September, Whitbread pledging £15m in pay increases last month, and Pret revealing its second pay rise of the year for workers.