Tax and benefit changes coming into effect this April mean that today’s Budget has been good for Living Wage earners, says KPMG.
The net gain rises to over £400 a year for a couple with two children both earning the national Living Wage. Individuals earning the national minimum wage (£6.31) will also be better off. A single adult would be over £140 better off – slightly more than their Living Wage counterpart.
Compared to people earning the national average or ‘median’ wage, gains are slightly higher for both Living Wage and national minimum wage earners.
Marianne Fallon, Head of Corporate Affairs at KPMG, said: “It is good to see that the low paid will be receiving more in their pay packets after today’s Budget. Of course, rises in some duties and other general price rises will eat into these gains. However, low paid workers will be in a better initial starting position. At a time when the cost of living has been a real concern, any boost to take home pay has to be welcome. With over 600 organisations and growing now paying their staff a Living Wage, we encourage other employers to consider whether they can make the move as well.”
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Chancellor’s Budget 2014
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.