Large increases to minimum wage rates to combat inflation

The Low Pay Commission has announced large increases in minimum wage rates to combat falling living standards caused by rising inflation.

Jennifer Cafferky Solicitor in our employment team, reports on this recent case.

It means the National Living Wage (NLW) will rise to £10.42 from 1 April 2023, an increase of 92 pence or 9.7 per cent.

The full changes are:

The Low Pay Commission (LPC) says the increase will ensure the NLW remains on track to reach the Government’s target of two-thirds of median earnings by 2024. The recommendations were unanimously agreed by Commissioners and accepted in full by the Government.

Bryan Sanderson, LPC Chair, said: “The rates 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.”

If you would like more information about the issues raised in this article, or any aspect of employment law please contact Jennifer on 01228 516666 or send her an email.