‘Significant’ pay boost scheduled for lowest paid UK workers
Announced today, the National Living Wage (NLW) is set to increase by almost £1 an hour from 1st April for those on the lowest income.
Workers should expect a 92p rise to £10.42 an hour for those aged 23 and over which is the equivalent to a near 10% increase, according to The Resolution Foundation – an independent think-tank focused on improving the living standards of those on small incomes.
As well as the rate of pay increasing for 23-year-olds+, the national minimum wage for people aged between 21 and 22 will also increase – going up £1 to £10.18. Additionally, individuals aged between 18 to 20 will also benefit from the announcement as their pay will rise from £6.83 to £7.49 and those under the age of 18 and on apprentice contracts will the minimum wage go up to £5.28.
However, 12,000 companies across the UK – including IKEA, Aviva, Burberry and Everton FC – already voluntarily go above the government’s National Living Wage and pay their staff the real Living Wage, which is set by the Living Wage Foundation and based on the true cost-of-living. Currently, it stands at £10.90 in the UK and £11.95 in London.
According to research from, a UK worker earning the National Living Wage would need an additional £936 each year to bring their income in line with the Real Living Wage.
With costs continuing soar due to rocketing inflation rates, the price needed to keep up with living rates represents nine months of food bills and over five months of housing and energy costs.
Katherine Chapman, Director of the Living Wage Foundation, said: ‘This significant rise in the National Living Wage is a welcome boost to ease some of the pressure inflation continues to pile onto low-paid workers. It remains lower than the real Living Wage which is based on the cost-of-living – the good news is we have seen record numbers of employers signing up to pay the higher real Living Wage to protect their lowest paid staff during these tough times.’
The Living Wage rates applies to everyone over the age of 18 and are set to increase in Autumn 2023. There are currently 3.5 million jobs below the real Living Wage in the UK, which equates to one in eight jobs.
Chloe, a Sales Assistant at popular beauty cosmetics store LUSH, said: ‘I have worked for LUSH and earned the real Living Wage for almost six years, since the age of 16.
‘The extra income has allowed me to afford things that others my age have struggled to, including buying a car and moving out of my parent’s house. Earning the Real Living Wage has also allowed me to go to university and live comfortably while training to be a paramedic.
‘It’s vital that people are paid in line with the cost-of-living, so that they can live comfortably without worries.’
Image: Aleks Marinkovic