National Living Wage to increase by £1,000 a year
It's going up to £9.50 an hour
Last updated 27th May 2022
The National Living Wage is going to be increased from £8.91 an hour to £9.50 from next year.
The move for all over-23s was announced by the Treasury today (25th October) ahead of Chancellor Rishi Sunak’s Budget this week.
The increase means that a full-time worker on the living wage will get a pay rise of more than £1,000 per year.
The change in the National Living Wage is set to take effect from 1st April next year, as will the increase in minimum wage, which is going up to £9.18.
The National Minimum Wage applies to everyone of school-leaving age while the National Living Wage applies to everyone aged 23 and over.
For those aged 21 and 22 years old, the minimum wage will rise from £8.36 an hour to £9.18, while the figure for apprentices will go from £4.30 to £4.81 per hour.
Mr Sunak said: "This is a Government that is on the side of working people.
"This wage boost ensures we’re making work pay and keeps us on track to meet our target to end low pay by the end of this Parliament."
But there will be questions over whether the hike is enough to support families facing a cost of living crisis.
Shadow chief secretary to the Treasury Bridget Phillipson said the rise was an "underwhelming offer".
"Much of it will be swallowed up by the Government’s tax rises, Universal Credit cuts and failure to get a grip on energy bills,” the Labour MP said.
"It’s clear that Labour is the only party serious about improving the prospects of working people."