London, (Zahid Anwar Mirza) — Around 2.7 million workers across the United Kingdom are set to receive a pay rise this week following an increase in the national minimum wage.

The hourly wage for workers aged 21 and above has been raised by 50 pence to £12.71. For those aged between 18 and 20, wages have increased by 85 pence to £10.85 per hour, while workers under 18 and apprentices will see a 45 pence rise, bringing their hourly pay to £8.

The increase has been welcomed by campaigners as a positive step for low-income earners. However, business groups have expressed concerns that rising costs may force them to increase prices or reduce staff.

The Low Pay Commission, which advises the government on wage levels, stated that previous increases in the minimum wage have not had a significant negative impact on employment.

Prime Minister Keir Starmer said the wage rise would help boost the incomes of low-paid workers, but acknowledged that the government must take further steps to reduce overall costs.

Meanwhile, Spencer Bowman, Managing Director of a coffee shop chain in Southampton, said he would be happy to pay higher wages but stressed that rising costs must remain manageable.

He noted that his business is already facing multiple financial pressures, including higher minimum wages, business rates, national insurance contributions, and sick leave costs. He also warned that energy bills could rise further due to ongoing tensions in the Middle East.

Bowman added that his business is already operating with minimal staff and further reductions are not feasible. If conditions do not improve, he cautioned, some businesses may be forced to shut down.