The Government has set out the new hourly rates which will come into effect from April 2023
More than three million workers across the UK can look forward to a hefty pay rise from April, as the Government is set to confirm legislation today that seals a new National Living Wage of £12.21, alongside a fresh National Minimum Wage set at £10.00 per hour. Reflecting last year’s Budget announcements, the 6.7% increase in the National Living Wage means a full-time worker eligible for the bump will see an annual boost of approximately £1,400 to their income.
Additionally, workers aged between 18 and 20 years old will see their National Minimum Wage jump by £1.40, reaching £10.00 per hour— an extra £2,500 yearly for those working full time on the rate. An impact assessment released today indicates that over the next six years, these changes are expected to inject roughly £1.8 billion directly into the wallets of hardworking citizens.
Employment Rights Minister Justin Madders said: “Economic growth only matters if working people are feeling the benefits. This will be a welcome pay bump for millions of workers who in turn will spend more in the real economy boosting our high streets. Our Plan for Change is putting money back into people’s pockets and delivering better living standards across the country.”
Chancellor of the Exchequer Rachel Reeves said: “This Government promised a genuine living wage for working people that will support people with the cost of living, creating a workforce that is fit and ready to help us deliver number one mission to growth the economy. This pay boost for millions of workers is a significant step towards delivering on that promise.”
Deputy Prime Minister Angela Rayner said: “We’ve taken quick and sensible action to boost wages for millions of lower-paid workers who are the backbone and future of our economy. This is us fulfilling our promise to make work pay and improve living standards across the country, with record boosts to support young people and apprentices – our skilled workers of tomorrow.”, reports Bristol Live.
The National Minimum Wage sets the bottom line employers must pay hourly for most workers, whilst folks 21 and older rake in a bit more with the National Living Wage. For the first time, both wallets feel the warm hug of inflation consideration, making history as they inch closer to a singular rate for all adult earners.
Apprentices aged 18 will see their pay rise by a hefty 18.0% from £6.40 to £7.55 an hour. This good news drops as the latest stats from the Office for National Statistics (ONS) flaunt that post-inflation average weekly earnings are sprinting ahead at the speediest clip in three-plus years.
Low Pay Commission Chair Baroness Stroud said: “The increases we recommended are a big step towards making work pay and achieving a genuine living wage. These rates secure a real-terms pay increase for the lowest-paid, and substantial increases for young workers makeup some of the ground lost against the adult rate over time.”
“It’s important we continue to assess the effects of these changes on employers and workers; to that end, the Low Pay Commission will be consulting with both groups in the coming months.”
TUC General Secretary Paul Nowak said: “This government is delivering on its promise to make work pay. The increase in the national minimum wage will make a real difference to the lowest paid at a time when one in six are skipping meals to get by. And moving to end the outdated and unfair youth rates will give young workers a boost up and down the country.”
“More money in working people’s pockets means more spend on our high streets – that’s good for workers and good for local economies. After workers in the UK have been through the biggest squeeze in living standards in 200 years, this boost to working people’s pay packets is badly needed.”
Jason Davenport, CEO of The Chartered Institute of Payroll Professionals (CIPP), has emphasized the importance of understanding and implementing new pay rates amidst employer pressures. He cautioned: “With continued pressure on employers, it’s imperative that we ensure the new rates are understood, implemented and paid to workers correctly. Compliance can be complex with issues for employers to be alert to around, for example, salary sacrifice arrangements.”
He also encouraged preparation: “The CIPP urges employers and agents to get their payroll processes ready for 1 April 2025 and the CIPP is on hand with support, advice and resources to help payroll professionals and employers ensure their workers are paid compliantly.”
