NLW ‘biggest rise ever’ confirmed

A rise of almost 10% is the largest hike in the country’s NLW amount ever, Jeremy Hunt told the House of Commons.

This followed recommendations of the Low Pay Commission and the Government also accepted its recommendations on other rates.

It included increasing the rate for 21- to 22-year-olds by 10.9% to £10.18 per hour, for 18- to 20-year-olds by 9.7% to £7.49 an hour and for 16- to 17-year-olds by 9.7% to £5.28 an hour. Furthermore, the apprentice rate will also rise by 9.7% to £5.28 an hour.

On target

Hunt said: “From 1 April 2023, the Government will increase the NLW by 9.7% to £10.42 an hour for those aged 23 and over.

“This is in line with the ambitious target for the NLW to reach two thirds of median earnings by 2024 and for the age threshold to be lowered to those aged 21 and over.

“This represents an increase of more than £1,600 to the annual earnings of a full-time worker on the NLW and is expected to benefit more than 2m low paid workers.”

Prior to the statement​, the British Institute of Innkeeping (BII) while it was pleased the Government was recognising the need to support those on lower incomes, the sector had already faced huge increases to their staffing costs in recent years.

Fair wages

In addition, the British Beer & Pub Association (BBPA) chief executive Emma McClarkin highlighted how the sector would be impacted by the reported rise.

She said: “Our industry is committed to providing fair wages to attract and retain great people with average pay in our sector up by 12% compared to 6% national wage inflation from 2021 to 2022.

“However, an inevitable consequence of wage inflation is it will add further pressures on our businesses at an increasingly difficult time, with overheads for pubs and brewers already up 22% on last year.

“That is why we urgently need the Chancellor to step in and help reduce the cost of doing business throughout the supply chain so our pubs and brewers can not only survive but thrive.”