People on the National Living Wage will see their wages increase almost 9.7 percent, from £9.50 an hour to £10.42 an hour, from April 1. The minimum wage for 21 to 22 year olds is to get an even bigger boost, of 10.9 percent, as the rate rises from £9.18 an hour to £10.18 an hour.
The Low Pay Commission recommended the rate hikes in efforts to get the National Living Wage up to two-third of median earnings by 2024.
Speaking in November last year, Bryan Sanderson, chairman of the Low Pay Commission Chair, said: “The rates announced today 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, today’s 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.”
The Apprentice Rate is increasing from £5.28 to £4.81 while the Accommodation Offset is going up from £8.70 to £9.10.
Britons who claim benefits will also get a sizeable increase in their income from next month as many benefits go up 10.1 percent.
This includes Universal Credit, which is claimed by millions of working age Britons on low incomes.
With the increase, the standard allowance is to go up to £292.11 and £368.74 a month for single claimants aged under and over 25, respectively.
Couples who are both under 25 will get £458.51 a month, while a couple over 25 will receive £578.82.
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Britons on many means-tested benefits, including Universal Credit, are also to receive a £900 cost of living payment over the coming financial year.
This will be paid in three instalments with the first payment in spring 2023, the second instalment in autumn this year and the third in spring 2024.
However, some eligible people may get the payments later than others. DWP guidance on the gov.uk website warns: “Your payment might come later, for example if you’re awarded a qualifying benefit at a later date or you change the account your benefit or tax credits are paid into.
“You will still be paid the cost of living payment automatically.”
Millions of people on low incomes will be eligible for the payment including those who claim these benefits:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Working Tax Credit – paid by HMRC if no other DWP means-tested benefit is also claimed
- Child Tax Credit – paid by HMRC if no other DWP means-tested benefit is also claimed.
