Minimum wage set for bumper increase

📍Top line: Chancellor Rachel Reeves is set to announce an increase in the minimum wage, delivering a pay rise of over 6% to more than a million low-paid workers. Expected to exceed the projected 5.8% increase, the new national living wage will be set at over £12.12 per hour, benefitting approximately 1.6 million people currently earning the minimum rate of £11.44.

• Youth Pay Increase: Younger workers aged 18-20, who currently earn a minimum rate of £8.60, are also set for a significant increase, bringing them closer to the rate paid to workers over 21. Ministers hope to implement a unified adult rate across age groups in the future.

• Business Response: While the wage rise aims to support low-income workers, business leaders have expressed concerns, particularly as Reeves plans to increase employer National Insurance contributions by up to 2 percentage points. Some business representatives, such as the Federation of Small Businesses, are calling for tax relief to counterbalance rising employment costs.

• Policy Background: The government has mandated the Low Pay Commission to keep the living wage at least two-thirds of median earnings. This measure, first set by the Conservatives, has been met by a series of above-inflation increases over the past decade.

Experts predict that the combined wage and National Insurance increases will strain small businesses, potentially requiring government support to sustain job creation amidst higher costs.

BA takes aim at lunch in cost-cutting drive

📍Top line: British Airways (BA) has introduced a new "Great British Brunch" for business and first-class passengers on long-haul flights, moving away from a full lunch service. The decision is part of a broader cost-saving strategy that has been met with mixed feedback from passengers accustomed to traditional meal service offerings on premium tickets. 

Key Points:

• Brunch Instead of Lunch: BA’s new “Great British Brunch” serves long-haul business and first-class passengers between 8:30 am and 11:29 am. Dishes include sausage, mushrooms, hash browns, frittata, and waffles, followed by dessert and tea or coffee.

• Changes in Late-Night Flights: BA has also replaced full evening meals on flights departing after 9 pm with a simpler “supper menu” to streamline service.

• Cost-Saving Meal Reductions in Recent Years:

  • 2016: Second meal service in economy removed on flights under 8.5 hours, later reinstated.

  • 2017: Short-haul economy cold meals and free drinks replaced with a paid Marks & Spencer menu, which has since been phased out for some complimentary snacks.

  • Long-Haul Amenity Cuts: Economy long-haul passengers no longer receive an amenity kit, while business class travelers no longer receive pyjamas.

Elsewhere in business:

📦 Evri, previously known as Hermes, has been rated as the worst parcel delivery service in the UK for the second consecutive year, with nearly half of its customers reporting delivery issues. A recent Ofcom review found that 44% of Evri’s users encountered problems, far higher than the 34% average across all delivery firms.

🏦 JP Morgan Chase is suing customers accused of exploiting an ATM glitch dubbed the “infinite money glitch,” which let users withdraw cash before deposited cheques bounced. The bank is pursuing individuals and businesses in courts in Houston, Miami, and Los Angeles, seeking repayment, interest, and legal costs.

Rent remains unaffordable for majority of England

📍 Top line: Renting remains unaffordable for a majority of people in England, with renters on a median income spending well above the 30% affordability threshold, according to the ONS. This trend of unaffordable rent has persisted since records began in 2015, despite minor regional variations.

Key insights:

• Unaffordable Rent in England: Typical renters on median incomes spend 34.2% of earnings on rent.

• London, South East, North West: London renters pay nearly 40% of income; the South East and North West follow with rents above 30%.

• Most Affordable Area: North Lincolnshire, where only 18.8% of income goes to rent.

• Least Affordable: Kensington and Chelsea renters spend a staggering 52.2% of income.

• Wales Remains Affordable: Only 27.2% of income goes to rent, consistent since 2015.

• Urban Hubs Struggle: Rent is especially unaffordable in areas like Manchester, Brighton, Bristol, and Bath.

Elsewhere in the economy:

🚌 Prime Minister Sir Keir Starmer has announced that the single bus fare cap in England will increase to £3 in the upcoming Budget, replacing the current £2 limit introduced by the previous Conservative government to help with the cost of living. The cap, originally set to expire at the end of December, will now extend until the end of 2025.

🇨🇳 China has announced a new wave of policies aimed at encouraging marriage and childbirth, as it seeks to counteract record-low birth rates and a rapidly aging population. The government will introduce high-quality entertainment, including TV shows, films, and plays, to promote a “marriage and childbearing culture.”

Law firm Macfarlanes has opened applications to its 2025 Lawtech Graduate programme in London. Successful applicants will be exposed to legal technologies and equipped to apply them to deliver sophisticated digital solutions within legal contexts across organisations. Apply now here.

Apple begins rolls out of AI features on iPhone

📍Top line: Apple has finally launched its long-awaited AI tools, Apple Intelligence, to select iPhone models worldwide. Unveiled in June, this new suite brings enhanced message-writing assistance, smarter notification summaries, and a refreshed Siri interface, marking Apple’s entry into a competitive AI field dominated by Google and Samsung.

New features: 

• Available Devices: Only on iPhone 16 models, iPhone 15 Pro, and Pro Max, via iOS 18.1 update.

• Key Features: Includes Clean Up, which erases unwanted image elements, notification summaries, and message-writing assistance.

• Upcoming Tools: Image generation and emoji creation from text prompts expected later this year.

• AI Competition: Apple lags slightly behind competitors like Google and Samsung, who already offer real-time translation and Magic Eraser on a broader range of devices.

• Ethical Hacking Bounty: Apple is offering up to $1 million to ethical hackers who expose security flaws in its new AI software.

Apple’s AI tools are also rolling out for Mac and iPad, aiming to usher in a “new era” across its ecosystem, according to CEO Tim Cook.

Elsewhere in tech:

📱 Instagram has confirmed it downgrades the quality of older, less popular videos, focusing high-resolution settings on content that garners more views. Adam Mosseri, head of Instagram, explained that the platform reserves higher quality for "creators who drive more views," while less-watched videos may experience reduced resolution. If a video gains popularity later, its quality can be enhanced accordingly.

📉 Elon Musk’s social media platform, X (formerly Twitter), has reportedly lost nearly 80% of its value since he took it private in 2022 for $44 billion. Investors, including Fidelity and Saudi billionaire Prince Alwaleed bin Talal, have seen billions in losses, as Musk uses X as a tool in his campaign to support Donald Trump’s 2024 presidential bid.

👶 Birth rates in England and Wales hit record lows in 2023, with an average of just 1.44 children per woman—the lowest since records began in 1938. Despite having 12 million women of childbearing age, only 591,072 babies were born, down by over 14,000 from 2022.

⚽️ Erik ten Hag has been dismissed as Manchester United manager following a disappointing start to the season, capped by Sunday’s 2-1 defeat to West Ham, which left United in 14th place in the Premier League. With only three wins from nine league matches and a rocky start in the Europa League, where they sit 21st of 36 teams, the club has opted for a managerial change.

🚨 Tommy Robinson, founder of the far-right English Defence League, has been jailed for 18 months after breaching a court injunction by repeating false claims about a Syrian refugee. Robinson, 41, admitted in court to contempt after violating a 2021 High Court order barring him from making defamatory statements against schoolboy Jamal Hijazi.