The government states it is committed to ending low pay.
From 1st April 2023, the National Living Wage (NLW) will increase by 9.7% to £10.42 an hour for workers aged 23 and over – the largest ever cash increase for the NLW.
This represents an increase of over £1,600 to the annual earnings of a full-time worker on the NLW and is expected to benefit over 2 million low paid workers.
Young people and apprentices on the National Minimum Wage (NMW) rates will also see a boost to their wages.
Bryan Sanderson, Low Pay Commission Chair, said:
The rates announced today include the largest increase to the NLW since its introduction in 2016 and will provide a much-needed pay increase to millions of low-paid workers across the UK, all of whom will be feeling the effects of a sharply rising cost of living. For a full-time worker, today’s increase means nearly £150 more per month.
The tightness of the labour market and historically high vacancy rates give us confidence that the economy will be able to absorb these increases.
Businesses also have to navigate these economically uncertain times and by ensuring we remain on the path to achieve our 2024 target, employers will have greater certainty over the forward path.
These recommendations have the full support of the business, trade union and academic representatives who make up the Commission.
PAYadvice.UK 17/11/2022 updated 18/11/2022