The Government has announced the National Living Wage is set to go up by nearly 10 per cent next year. In doing so, it has accepted in full the recommendations of the Low Pay Commission. It is hoped that the increase will help to partially shield the lowest-paid workers from the impact of inflation, which has surged in recent months as the cost-of-living crisis bites.
With the current crisis hitting the poorest households particularly hard, both minimum wage rates and DWP benefits are set to rise almost in line with price increases. The rate of consumer price inflation stood at 11.1 per cent in the year to October.
As energy bills and the prices of many everyday essentials continue to rocket, many people are wondering just when the minimum wage will go up, and how much it’ll increase by.
The minimum wage varies depending on the age group you’re in. Currently, as of 2022, the National Living Wage - which is the minimum wage for people aged 23 and over - stands at £9.50 an hour. For people aged 21 to 22, the minimum wage is £9.18 an hour, while it stands at £6.83 an hour for 18 to 20-year-olds. Under-18s and apprentices have a minimum wage of £4.81.
The increases are in line with the recommendations of the Low Pay Commission, an independent body that advises the government on minimum wage rates. The government traditionally accepts the recommendations of the Low Pay Commission each year.
The rates which will apply from 1 April 2023 are as follows:
In 2023, the National Living Wage will increase by 9.7% to £10.42 an hour. For 21 to 22-year-olds, the minimum wage will rise to £9.18, as well as increasing to £7.49 for 18 to 20-year-olds and to £5.28for under-18s and apprentices.
When does the minimum wage go up?
The increase in the minimum wage will come into effect from April 1. Each year, any changes to minimum wage rates come into force from this date.