Last month we reported on increases in the ‘real Living Wage’. This month, we’ve found out that the National Minimum Wage (NMW) is also on the up.
What’s happening and when?
In Jeremy Hunt’s recent Autumn Statement, he confirmed that the government would be accepting the recommendations of the Low Pay Commission in relation to the revision of our NMW rates. As a result, with effect from 1 April 2023, rates will increase as follows:
• National Living Wage (age 23 and over) rises from £9.50 to £10.42
• NMW rate for those aged 21 to 22 rises from £9.18 to £10.18
• NMW rate for those aged 18 to 20 rises from £6.83 to £7.49
• NMW rate for those aged 16 to 17 rises from £4.81 to £5.28
• Apprentice rate rises from £4.81 to £5.28
• ‘Accommodation offset’ rises from £8.70 to £9.10
Is this enough?
With almost all NMW rates going up by about 10%, this will represent a significant increase in the wages of the UK’s lowest paid workers. Some have voiced concerns about whether squeezed British businesses can afford the hike. However, others will have observed that despite these increases, the National Living Wage rate will still fall well short of the ‘real Living Wage‘, as measured by the Living Wage Foundation. As a result, it may that as a consequence of these increases, both employers and employees will be left disappointed.
Can we help?
If you want to discuss your responsibilities or entitlements under national minimum wage legislation, please get in touch