There are reports that Chancellor Jeremy Hunt may look to increase the national living wage in the Autumn Statement.
The Times has reported that there could be an announcement of a significant increase in the national living wage – from £9.50 an hour to around £10.40 an hour.
What is the National Living Wage?
The national living wage applies to workers aged 23 and over.
Those of school leaving age up to 23 are entitled to the national minimum wage.
The current rates set in April 2022 are:
Aged 23 and over: £9.50
Aged 21 & 22: £9.18
Aged 18 to 20: £6.83
Under 18: £4.81
Apprentice: £4.81
More details on the rates can be found on the Government website.
What is the Real Living Wage?The real living wage is set by the Living Wage Foundation, to reflect the real cost of living.
It does not apply to every worker – just those employed by organisations who have signed up to the Living Wage Foundation.
The real Living Wage is an independently calculated figure used by the Living Wage foundation that is based on what people need to get by after taking into account costs like housing, utility bills and food.
It should not be confused with The Minimum Wage, a statutory minimum wage for under 23s or the National Living Wage, for over 23s, which is set by law.
The difference was made more unclear when in April 2016, the government introduced the higher minimum wage rate for all staff over 25 years of age, renaming it the ‘national living wage’ from its original name, the ‘national minimum wage’.
The Real Living Wage current rates were set in September 2022 and are £10.90 and £11.95 in London.
More on the Autumn Statement:
Autumn Statement: Businesses tell us what they want from fuel duty, energy bills to business rates Experts tell us what to expect from Jeremy Hunt on tax rises, NI and cuts in the Autumn Statement Get our front page headlinesCost of Living: List of firms helping staff with bonus payments
