“This pay rise will help families across the country"
On April 1, 2023, the national living wage and minimum pay increases went into effect, positively impacting nearly three million workers.
However, with sectors dominated by young people being largely affected by new national living wage hikes, will young people in the UK benefit amidst a cost of living crisis?
The national minimum wage will go up for younger workers.
The national living wage increased by 9.7%, from £9.50 to £10.42 per hour, or more than £1,600 more in annual pre-tax income for a full-time worker, as part of the rate increases.
According to a statement, workers in sectors like retail, hospitality, cleaning and maintenance would gain from the wage hike, as will women from BAME backgrounds.
The nation’s 2.9 million lowest-paid employees are going to get additional income as a result of the rise.
The statement claims that since the national living wage’s implementation in 2016, the hike is both the largest cash increase and highest percentage increase, protecting the incomes of millions of workers from the rising cost of living.
Business and trade minister Kevin Hollinrake said:
“Today we are now 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 our five priorities, including growing the economy and halving inflation.”
Here is a breakdown of the new national minimum wage rates:
- National Living Wage (23+) has increased 9.7%, from £9.50 to £10.42
- National Minimum wage (21-22) has increased 10.9%, from £9.18 to £10.18
- National Minimum Wage (18-20) has increased 9.7%, from £6.83 to £7.49
- National Minimum Wage (under 18) has increased 9.7%, from £4.81 to £5.28
- Apprentice Rate has increased 9.7% from £4.81 to £5.28
- The Accommodation Offset also increased 4.6% from £8.70 to £9.10
The government’s measures to help families with living expenses included a three-month extension of the Energy Price Guarantee, which will keep monthly energy costs for the average household at £2,500 until the end of June.
Additionally, the UK prolonged the suspension of fuel duty, saving the average motorist £100 over the following year.
Moreover, £842 million has been announced by the Department of Work and Pensions to assist England’s most vulnerable households.
By extending the Household Support Fund until the end of March 2024, authorities will have more money to directly assist those who are most in need with their basic food and energy needs.
Furthermore, the Department of Transport has announced an extension of the £2 fare maximum for bus riders till the end of June 2023.
According to the government, the national minimum salary for workers aged 21 and 22 in 2023 is 52% higher than the 2015 rates, while the national minimum wage for apprentices is now 60% higher.