Nearly 27,000 workers in Somerset are poised to see an increase in their pay come next April. This change is attributed to the upcoming rise in the minimum wage, which will affect around 18% of the local workforce.
As part of the recent announcement by the Labour government, the minimum wage for workers aged 21 or above will be raised to £12.21, marking a substantial increase of 77p. Additionally, significant raises are also scheduled for younger workers, with 18 to 20 year olds set to receive at least £10 an hour (an increase of £1.40), and 16 to 17 year olds to be paid £7.55 (+£1.15).
The impact of the new minimum wage extends beyond Somerset, with workers in other areas of the South West also due for pay rises. Around 16% of workers in Devon, Dorset, and Gloucestershire, and 18% in Cornwall, are among those expected to benefit from the wage increase. In Bristol, 9% of workers will also see adjustments in their pay. Overall, a staggering 239,700 people across the South West can anticipate positive changes in their earnings.
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The recent Autumn budget, which introduced the new minimum wage, has sparked differing opinions among Somerset MPs. Labour MP for North East Somerset and Hanham, Dan Norris, hailed the National Living Wage raise as one of the noteworthy achievements of the Labour government, emphasizing the positive impact it will have on education and healthcare facilities.
Conversely, Conservative MP for Bridgwater, Ashley Fox, criticized the budget, expressing concerns about its potential impact on small businesses and lower-income employees. He argued that the measures in the budget might lead to job cuts and added strain on workers' wages.
Charlie Bailey, co-founder of accounting firm GoForma, shed light on the occupations most likely to witness salary adjustments as a result of the new minimum wage. Retail, care, warehousing, and transportation are among the sectors where earnings frequently fall below the minimum wage. Bailey also provided guidance for individuals concerned about discussing potential wage violations with their employers, highlighting the protection offered by victimisation laws.
To assess the number of individuals entitled to wage increases, GoForma utilized recent data on average weekly earnings from the Office for National Statistics.