The Resolution Foundation has expressed concern about the potential impact of an upcoming increase in UK payroll taxes on wage stagnation and living standards for lower-earning workers.

According to their analysis, real weekly wages are projected to only increase by £13 ($17) by 2028, which is significantly lower than the previous two decades. This is primarily due to persistent inflation and stagnant pay during the current parliamentary term.

The spending plans of Chancellor of the Exchequer Rachel Reeves, which aim to generate an additional £26 billion from the employers' share of the National Insurance levy, have faced scrutiny. These findings align with the Office for Budget Responsibility's assessment, suggesting that workers may continue to face financial challenges in the years ahead.