Minimum wage to rise to £10.42 per hour

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The minimum wage is set to rise to over £10 per hour

Minimum wages are set to rise again in April, increasing to £10.42 an hour.

From April 2023, the National Living Wage will increase by 92 pence per hour, or 9.7%, to £10.42 whilst the national minimum wage rates for younger workers will also increase.

Those aged 21-22 will earn £10.18 an hour, a £1 rise, whilst 18–20-year-olds will receive £7.49 an hour, an increase of 66p.

Apprentices and 16 and 17-year-olds will receive £5.28 an hour, a 47p increase.

Currently the National Living Wage applies to those 23 and over, having been lowered from 25 in April 2021.

The threshold will be further reduced to 21 by 2024, following recommendations made by the Low Pay Commission independent body in Autumn 2019.

Bryan Sanderson, chair of the Low Pay Commission, said: “The rates announced include the largest increase to the NLW since its introduction in 2016 and will provide a much-needed pay increase to millions of low-paid workers across the UK, all of whom will be feeling the effects of a sharply rising cost of living. For a full-time worker, the increase means nearly £150 more per month.

“The tightness of the labour market and historically high vacancy rates give us confidence that the economy will be able to absorb these increases.

“Businesses also have to navigate these economically uncertain times and by ensuring we remain on the path to achieve our 2024 target, employers will have greater certainty over the forward path.

“These recommendations have the full support of the business, trade union and academic representatives who make up the commission.”