The government has recently announced the rates of the National Living Wage (NLW) and National Minimum Wage (NMW) following recommendations from the Low Pay Commission (LPC) which will come into force on 1 April 2023.
In the government’s autumn statement on 17 November 2022, the following new rates were announced:
- Age 23 or over (NLW rate): £10.42 (up 9.7% from £9.50)
- Age 21-22: £10.18 (up 10.9% from £9.18)
- Age 18 to 20: £7.49 (up 9.7% from £6.83)
- Age 16 to 17: £5.28 (up 9.7% from £4.81)
- Apprentice rate: £5.28 (up 9.7% from £4.81)
- Accommodation offset amount: £9.10 (up 4.6% from £8.70)
The LPC is an independent public body that advises the government on the rates of the NMW, including the NLW. The government asks the LPC to monitor and evaluate the NLW and recommend the rate which should apply from April 2023 in order to reach two-thirds of median earnings (of those eligible for the NLW) by 2024. Given the prevailing economic conditions and cost of living crisis, the LPC believes these increases will support the wages and living standards of low-paid workers in the UK amidst such uncertainty.