Big Pay Rise for Millions as Minimum Wage Hits New High
Millions of the UK’s lowest-paid workers are getting a welcome pay boost from today. The National Living Wage and National Minimum Wage have soared, putting more cash into the pockets of nearly 3 million people.
National Living Wage Jumps by 9.7% to £10.42
- The National Living Wage for workers aged 23 and over has increased by a hefty 9.7%, from £9.50 to £10.42 per hour.
- This equates to an extra £1,600 a year before tax for full-time staff – the biggest cash hike ever recorded.
- Younger workers also benefit, with the National Minimum Wage rising across all age categories.
Who’s Getting the Boost?
This pay rise is a lifeline for workers in retail, hospitality, cleaning, and maintenance. Women from ethnic minority backgrounds will especially feel the benefit.
Business and Trade Minister Kevin Hollinrake 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 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 growing the economy and halving inflation.”
Full Breakdown of the New Rates From 1 April 2023
- National Living Wage (23+ years): up 9.7% from £9.50 to £10.42
- National Minimum Wage (21-22 years): up 10.9% from £9.18 to £10.18
- National Minimum Wage (18-20 years): up 9.7% from £6.83 to £7.49
- National Minimum Wage (under 18): up 9.7% from £4.81 to £5.28
- Apprentice Rate: up 9.7% from £4.81 to £5.28
- Accommodation Offset: up 4.6% from £8.70 to £9.10
More Support on the Way
Alongside the wage rise, other government support kicks in today:
- Energy Price Guarantee extended for three months, capping typical household energy bills at £2,500 until the end of June.
- Fuel duty freeze continues, saving drivers around £100 a year.
- £842 million funding boost for vulnerable households via the Household Support Fund in England.
- Bus fare cap of £2 extended until June to help families save money and encourage public transport use.
The government says these moves keep them on track to meet manifesto pledges, aiming for the National Living Wage to reach two-thirds of median earnings by 2024, depending on economic conditions.
Long-Term Gains for Workers
Since 2015, the National Minimum Wage for 21- to 22-year-olds has risen by 52%. Apprentices’ pay has jumped 60%. This steady climb delivers vital help for low-paid workers battling the rising cost of living.
