Inflation and interest have been in the news this week with the latter rising to try and stem the former. The announcement this week forecast the longest recession since the 1920s with interest rates likely to rise above 4% by 2024.
In addition to impacting the cost of living and cost of doing business it is also worth noting that statutory pay limits for the SSP, NMW, SMP and redundancy pay are linked to the Consumer Price Index. This means we are likely to see them rise substantially next year.
With inflation currently at over 10% and it likely to rise further before April 2023 it would not be surprising to see the NMW rise to over £10.50 per hour and redundancy pay to over £600 per week. The knock on impact of this will likely lead to redundancies being announced with notice expiring before April 2023.
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