George Osborne has introduced a new minimum wage of £7.20 an hour for the over-25s and pledged to raise wages for the same age bracket to around £9 an hour by 2020.
Rhys Moore, director of Living Wage UK, responded to what the chancellor called a national living wage by saying that “this is effectively a higher national minimum wage and not a living wage”. Currently, the living wage is £9.15 an hour in London and £7.85 in the rest of the UK.
There are fears that the raise will lead to job cuts. John Cridland, director general of the CBI, warned that “jobs might be lost in restaurants, hotels and the social care sector”.
So with living costs in cities such as London still high, what difference will the change make to Britain’s low-paid workers?
Here’s what you’ve been saying on Twitter:
@GuardianCareers depending on where in the UK. Because that isn't enough for those living in London inc Grtr London #budget2015
— Sarah (@loveskhloe_k) July 8, 2015
Revealed: Low income families are actually set to be worse off http://t.co/Lw4HkXCCxc #budget2015 #livingwage pic.twitter.com/GomF6LSrG3
— The Conversation (@ConversationUK) July 9, 2015
@GuardianCareers Why not anyone of working age? I've had many jobs where I've has the same amount of responsibility as old people and been
— Ellie (@espanswick) July 8, 2015
@GuardianCareers paid much less. Being an adult starts at 18 which doesn't mean as a 16 or 18 year old, that you don't have living expenses.
— Ellie (@espanswick) July 8, 2015
Glad to hear the minimum wage is going to be raised to the living wage but VAT will need to come down #budget2015
— Liam (@VoiceofKomo) July 9, 2015
I wonder how the Living wage foundation will react to the Chancellor stealing (and lowering) their term? #budget2015
— Martin Lewis (@MartinSLewis) July 8, 2015
Can someone explain to me why if you're under 25 you don't need an increase in the minimum wage? #budget2015
— Really_Robbie (@Really_Robbie) July 9, 2015
#Budget2015 a living wage is calculated according to the cost of living, not what a self interested market thinks it can afford.
— David Hardman (@JesmondDavid) July 9, 2015
@GuardianCareers do under 25s not need to have an acceptable living standard? Eeeek.
— MISMATCHEVERYTHING (@swailesfrmwales) July 8, 2015
What do you think about the new minimum wage? Share your thoughts in the comments below.
