NATIONAL MINIMUM WAGE 2022: Budget Update

Autumn Budget 2021: What We Already Know

The Budget announcements comes around every few months and each time, the Chancellor of the Exchequer tells us the content is a well-guarded secret. This is rarely the case and in advance of Rishi Sunak’s Autumn Budget tomorrow, many of the key messages have already been shared or committed to. What do we already know about the 2021 Autumn Budget and how will it impact the skills, training, and employment worlds?

Wages

Rishi Sunak has spoken openly about changes to minimum wage for workers of all ages, including apprentices. From April 2022 the minimum wage will increase from £8.91 to £9.50 for all workers aged over 23. This equates to a before-tax increase of £1,074 for full-time workers. The government is also committing to higher rates for younger workers, with the National Minimum Wage for people aged 21 to 22 going up to £9.18 an hour and the Apprentice Rate increasing to £4.81 an hour.
Wage increases are an opportunity to give employees the chance to raise their quality of life, especially necessary after the impact of COVID-19.

Education and Training

Post-16 education is in the spotlight again with the Treasury stating it will “turbo-charge post-16 education” with £3bn investment in this area to boost skills. This means there should be a huge growth in places in skills bootcamps and 24,000 more traineeships. There will also be funds specifically for teaching 16–19-year-olds taking T-levels in vocational subjects. The Multiply scheme is also being developed with a £560m separate fund to offer up to 500,000 people free personal tutoring or digital training to improve their job prospects.

Arts and Sports

Arts and sports are fields where many make their first career move and both have been hit hard by the pandemic. The Treasury has hinted at a huge injection of cash for these sectors. This includes £850m to boost and bring life back to culture and heritage posts including York’s National Railway Museum, Liverpool’s Tate Art Gallery and the British Museum. Sports investment may total £700m with the development sports facilities and youth clubs including 3G football pitches and tennis courts.
These are just some key areas where we can expect a significant investment in tomorrow’s Budget. There will also be provision for other key areas including healthcare, transport and of course, changes to taxation. Much of this information has been discussed previously, but the Chancellor will be making his official announcement and laying out timelines at approximately 12.30pm on 27th August.