UK wage rates reportedly set to rise about 4% without closing gap for younger workers

Bloomberg, citing a person familiar with discussions, reports that Chancellor John Healey plans rises of about 4% in the national living wage and the rate for 18- to 20-year-olds in the October 28 budget. Reuters, citing the Times, says the rate for those 21 and over would rise from £12.71 to about £13.20 an hour, while the younger workers’ rate would rise from £10.85 to around £11.27. If confirmed, the increases would take effect in 2027, leaving the gap between rates intact.