While the full details will be unveiled in the Chancellor’s statement, he is set to announce major new childcare support, an increase to the pension cap and reforms to help disabled and sick workers back to work.
One thing that we know for sure is how much the UK’s minimum wage and National Living Wage will go up in 2023, because this was outlined in Mr Hunt’s Autumn Statement last year – here’s what you need to know.
How much will the minimum wage increase?
In November, the Chancellor confirmed that the National Living Wage would rise by 9.7 per cent to £10.42 per hour.
This rate applies to workers aged 23 or over – those who are at least of school leaving age are entitled to the minimum wage, which is on a sliding scale depending on their age.
The 9.7 per cent increase applies to all of the minimum wage bands too, except for those aged 21 to 22, who will see a 10.9 per cent rise.
All of the new rates come into effect from 1 April 2023, as is the case every year.
Mr Hunt told Parliament: “I am accepting the recommendation of the Low Pay Commission to increase it next year by 9.7 per cent.
“That means, from April 2023, the hourly rate will be £10.42, which represents an annual pay rise worth over £1,600 pounds to a full-time worker.”
Here is the full breakdown of minimum wage increases for 2023:
- National Living Wage (aged 23 or over): from £9.50 to £10.42
- Minimum wage aged 21 to 22: from £9.18 to £10.18
- Minimum wage aged 18 to 20: from £6.83 to £7.49
- Minimum wage for under-18s: From £4.81 to £5.28
- Apprentice rate: £4.81 to £5.28
Apprentices are entitled to the apprentice rate if they’re either aged under 19, or aged 19 or over and in the first year of their apprenticeship.
However, they are entitled to the minimum wage for their age if they are both 19 or over and have completed the first year of their apprenticeship.
What is the Real Living Wage?
While these are the statutory minimum wages that apply to all workers, there is also an unofficial “Real Living Wage”, which employers in the UK can voluntarily commit to.
This figure – which is higher than the national minimum – is calculated by the Living Wage Foundation, a campaigning organisation, and is based directly on cost of living.
Its latest rates were announced in November 2022, promising to bring a pay boost for nearly 400,000 workers.
The Real Living Wage increased by £1 to £10.90 across the UK, and went up by 90p to £11.95 for workers in London.
According to its official website, there are now more than 12,000 UK businesses taking part in the scheme, such as the Royal Albert Hall, Everton FC, Burberry and Lush.