The Government has now announced the minimum wage rates which will apply from 1 April 2023, following the recommendations of the Low Pay Commission (LPC) in full.
The National Living Wage – which applies to workers aged 23 and over – will rise from £9.50 to £10.42 (an increase of 92 pence or 9.7%).
The new rates are set out below:
| Rate from 1 April 2023 |
Current Rate |
Increase | |
| National Living Wage | £10.42 | £9.50 | £0.92 / 9.7% |
| 21-22 Year Old Rate | £10.18 | £9.18 | £1.00 / 10.9% |
| 18-20 Year Old Rate | £7.49 | £6.83 | £0.66 / 9.7% |
|
Apprentice Rate |
£5.28 | £4.81 | £0.47 / 9.7% |
| Accommodation Offset | £9.10 | £8.70 | £0.40 / 4.6% |
The LPC acknowledged that these increases will support the wages and living standards of low-paid workers at a time when many are feeling increased pressure from a rising cost of living (and for full-time workers will amount to almost an additional £150 per month).
The recommendations also ensure that the National Living Wage continues on track to reach the Government’s target of two-thirds of median earnings by 2024.
Hannah Pryce comments: “The LPC has noted that these increases are recommended against the backdrop of a tight labour market, where unemployment is at record lows and vacancies remain high as businesses compete to recruit and retain staff. Employers should therefore review staff wages and ensure steps are taken to implement the necessary increases in advance of 1 April 2023.”
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