UK Plans to Increase Minimum Wage

The U.K.'s chancellor of the exchequer, Jeremy Hunt, has revealed plans to raise Britain's minimum wage. Speaking at the Conservative Party conference in Manchester, the treasury minister stated that the country intends to increase the minimum hourly pay to at least £11 ($13.37), surpassing the current rate of £10.42.

The proposed hike aims to benefit approximately two million workers and will be determined by the independent Low Pay Commission, which advises the government on such matters. In November 2022, the commission recommended that the U.K. government target an hourly minimum wage ranging from £10.82 to £11.35.

It is worth noting that this policy announcement comes ahead of a forthcoming general election, which must take place on or before January 28, 2025.

If implemented, the £11 hourly rate would establish Britain's minimum wage as notably higher than that of major economies such as the United States, Japan, and Germany, as per OECD data from 2022. Luxembourg currently boasts Europe's highest minimum wage, amounting to nearly $14.

Notably, Italy, the European Union's third-largest economy, presently lacks a minimum wage policy.

Moreover, Britain's elevated minimum wage would surpass that of all but ten U.S. states, as well as Washington D.C., based on data from the Congressional Research Service as of March. While the federal minimum wage in the U.S. currently stands at $7.25 per hour, 30 states have set higher minimum wages, with Washington D.C. offering the highest rate at $17 per hour.

The median minimum wage in states that surpass the federal standard is $12 per hour.