National Living Wage increase: April 2023

A calculator, pen and budget document.

What is the National Living Wage?

The National Living Wage is the minimum amount per hour your employer can pay you if you are over 23 years old. 

It was introduced by the UK Government in 2016 to ensure everyone in work is paid an amount that covers the cost of living.

How is the National Living Wage calculated?

The National Living Wage is calculated based on median UK earnings (an average of salaries in the UK) and whether businesses can afford the wage.

Who gets the National Living Wage?

If you are 23 years old or over you are entitled to be paid the National Living Wage by your employer.

Are the National Living Wage and the National Minimum Wage the same?

No, the National Living Wage and the National Minimum Wage are not the same.

  • The National Living Wage applies to workers from age 23 and over. 

  • The National Minimum Wage applies to workers between the ages of 16–22.

Will the National Living Wage increase in 2023?

The National Living Wage from 2022–2023 was £9.50 per hour.

The National Living Wage will increase on 1 April 2023. 

From 1 April, the National Living Wage will be £10.42 per hour. This is an increase of 9.7% from April 2022.

The increase is the largest since the introduction of the National Living Wage in 2016. This is a reflection of the increasing costs people are facing due to inflation and the cost of living crisis.

How does National Living Wage reduce poverty?

The National Living Wage is designed to make sure that people have enough money to live on.

There is criticism that the National Living Wage doesn’t accurately reflect living costs. The Real Living Wage Foundation campaigns for employers to pay a voluntary higher rate of pay of £10.90 across the UK and £11.95 in London for all their workers, to ensure that people have what they need to live.