- The National Living Wage will see an increase of 9.7%, up to
£10.42 for workers aged 23+, as well as an increase for younger
workers on the National Minimum Wage
- The uplift – worth £1,600 more for a full time worker – will
benefit workers in industries like retail, hospitality and
cleaning and maintenance, as well as women from BAME backgrounds
- This adds to other government support coming into effect
today, including the Energy Price Guarantee, Household Support
Fund and bus fare extension
Millions of the lowest paid workers across the UK will from today
[Saturday 1 April] receive a pay increase as the National Minimum
Wage and National Living Wage rise comes into effect.
The increase will put more money in the pockets of 2.9 million of
the lowest-paid workers across the country.
The rate rises include a 9.7% 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.
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.
Business and Trade Minister 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.
“Today 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.”
The full increases from 1 April 2023 are:
- National Living Wage (23+) has increased 9.7%, from £9.50 to
£10.42
- National Minimum wage (21-22) has increased 10.9%, from £9.18
to £10.18
- National Minimum Wage (18-20) has increased 9.7%, from £6.83
to £7.49
- National Minimum Wage (under 18) has increased 9.7%, from
£4.81 to £5.28
- Apprentice Rate has increased 9.7% from £4.81 to £5.28
- The Accommodation Offset also increased 4.6% from £8.70 to
£9.10
The 9.7% increase to the National Living Wage today 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.
Further government action also comes into effect today 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. We have also extended the freeze
on fuel duty, saving the average car driver in the UK £100 over
the next year.
The Department for Work and Pensions have also announced £842
million to help the most vulnerable households across England.
The extension of the Household Support Fund, which comes into
effect today, gives councils additional cash to directly help the
most in need with essential food and energy costs until the end
of March 2024.
The Department for Transport have also announced a £2 fare cap
for bus users which is being extended until the end of June. This
cap will help save passengers money, encourage more people back
on the bus and grow the economy.
The National Living Wage and National Minimum Wage have increased
every year since their introduction – and this year, there is no
exception. The Government is committed to providing both workers
and businesses with certainty as we deal with cost-of-living
challenges.
The 2023 National Minimum Wage for 21 and 22 years is 52% higher
and the National Minimum Wage for apprentices is 60% higher than
the 2015 rates.
The uplift will particularly benefit workers in sectors such as
retail, hospitality and cleaning and maintenance, as well as
women from black, Asian and ethnic minority (BAME) backgrounds.
Notes to Editors
