UK's 2.9 mn lowest-paid workers get pay rise

04 Apr '23

3 min read

Pic: Shutterstock/ drake2uk

Insights

The National Minimum Wage and National Living Wage have increased in the UK from April 1, 2023, benefiting 2.9 million low-paid workers across the country.
The National Living Wage has risen by 9.7 per cent from £9.50 to £10.42 per hour.
The pay rise is the largest ever cash increase and highest percentage increase since its introduction in 2016.

Millions of the lowest paid workers across the UK will receive a pay increase as the National Minimum Wage and National Living Wage rise came into effect from April 1, 2023. The pay rise is expected to leave a little more money in the hands of 2.9 million of the lowest-paid workers across the country to spend on clothing and other items.

The rate rises include a 9.7 per cent increase in the National Living Wage, from £9.50 per hour to £10.42, the equivalent of more than £1,600 extra per year before tax for someone working full-time, according to a press release by the UK’s department for international trade.

This increase is the largest ever cash increase to the National Living Wage, and highest increase in percentage terms since its introduction in 2016, helping to protect the incomes of millions of workers from high cost-of-living.

National Living Wage (23+) has increased 9.7 per cent, from £9.50 to £10.42. National Minimum Wage (21-22) has increased 10.9 per cent, from £9.18 to £10.18. National Minimum Wage (18-20) has increased 9.7 per cent, from £6.83 to £7.49. National Minimum Wage (under 18) has increased 9.7 per cent, from £4.81 to £5.28. The Apprentice Rate has increased 9.7 per cent from £4.81 to £5.28. The Accommodation Offset also increased 4.6 per cent from £8.70 to £9.10.

The 9.7 per cent increase to the National Living Wage keeps the government on track to achieve its manifesto commitment for the National Living Wage to equal two-thirds of median earnings by 2024, provided economic conditions allow, the UK government said.

Further government action also came into effect to support households with the cost of living, including extending the Energy Price Guarantee at its current level for another three months, which keeps energy bills at £2,500 for a typical household until the end of June. The government also extended the freeze on fuel duty, saving the average car driver in the UK £100 over the next year.

The 2023 National Minimum Wage for 21 and 22 years is 52 per cent higher and the National Minimum Wage for apprentices is 60 per cent higher than the 2015 rates. The uplift will particularly benefit workers in sectors including retail.

Business and trade minister Kevin Hollinrake said: “This government is doing everything it can to support hardworking people with the cost of living—from paying energy bills to helping with childcare. We are now increasing the National Living Wage to record levels, boosting the incomes of almost 3 million people.

“This pay rise will help families across the country, as we focus on our five priorities, including growing the economy and halving inflation.”

ALCHEMPro News Desk (NB)

More Textiles News - United Kingdom...