UK Boosts National Living Wage 9.8%, But Unions and Analysts Debate if Raise Goes Far Enough

The UK's national living wage (NLW) is increasing by 9.8% to £11.44 per hour, benefitting 2.7 million full-time workers. However, many feel the boost is still not enough to keep up with inflation.

Trade unions welcome the raise but are calling for the NLW to increase to £15 per hour as soon as possible, stating real wages have stagnated for 15 years.

The wage increase could spur inflation if employers compensate higher earning staff, concerning the Bank of England. But analysts expect overall inflation to keep falling.

The voluntary "real living wage" is over £3 higher than the NLW at £12-13.15 per hour, with 13% of the UK workforce paid below this threshold.

Income inequality has risen substantially since the 1980s, with top FTSE 100 CEOs now earning 130 times more than the average employee.