UK Chancellor to Announce Above-Inflation Minimum Wage Rise Above £13 an Hour

Chancellor John Healey will announce an inflation-busting increase in the National Living Wage in Wednesday's Budget, raising the headline rate by just under 4pc to above £13 an hour for the first time. The rise outstrips inflation, currently 3.5pc and expected to average around 3pc in 2027. Healey is also expected to slow increases in youth minimum wage rates, following sharp rises under Labour and the Conservatives. The shift comes as almost a million young people in Britain are neither earning nor learning. The move adds pressure on businesses already facing rising wages, energy costs and taxes. The Low Pay Commission said in March it was minded to recommend a headline increase of up to 5pc, with a central estimate of around 3.7pc taking the rate to £13.18 an hour from next April. Deutsche Bank forecast a 4.6pc rise; Morgan Stanley warned it could reach 5.5pc. The Treasury declined to comment.