When does minimum wage go up 2023? What is UK national basic rate of pay and planned rise explained

Millions of workers will see a boost in their pay from this weekend as the new minimum wage rates come into effect.

The government announced at the end of last year that April will see the biggest ever cash rise to the National Living Wage - for those aged 23 and over - although the 9.7% increase is still below inflation, which is currently at 10.4%.

The uplift which will benefit around two million workers and will see hourly wage rates rise from £9.50 to £10.42 - an increase of 92p - from 1 April. It means a £1,600 pay rise for a full-time worker.

The National Minimum Wage, for those 23 and under, will also go up from April. The minimum wage is what employers are required to pay workers by law and the hourly rate depends on your age and whether you are an apprentice. Those aged between 21 and 22 will see their pay rise by £1, with rates increasing from £9.18 to £10.18.

Workers aged 18 to 20 will get a 66p increase and see hourly rates rise from £6.83 to £7.49, while those under 18 and apprentices will get a 47p hourly increase, from £4.81 to £5.28.

The minimum wage increases from April

Listed are the new minimum wage rates from 1 April in full, depending on your age@

• National Living Wage (aged 23 and over) - up from £9.50 to £10.42
• National Minimum Wage for people aged 21 to 22 - up from £9.18 to £10.18
• National Minimum Wage for people aged 18 to 20 - up from £6.83 to £7.49
• National Minimum Wage for under 18s and apprentices - up from £4.81 to £5.28

What about the Real Living Wage?

Some workers are paid the voluntary Real Living Wage which is designed to reflect a more accurate cost of living, and employers can choose to sign up to this.

The voluntary scheme aims to ensure salaries meet the needs of workers and is run by charity the Living Wage Foundation, which independently calculates the cost of an everyday basket of goods workers are likely to face every day and sets wages accordingly.

Around 11,000 UK firms with close to 400,000 employees are signed up to the scheme, including several major businesses such as Nationwide, Google, LUSH, Everton FC and Chelsea FC.

A report commissioned by the foundation last year suggested the UK economy would have a £1.7 billion boost if more people on the statutory living wage were paid the higher voluntary rate. The research found an increase in spending and productivity if many of those on the statutory rate saw their pay rise to the so-called real living wage.

The voluntary rate is £11.95 an hour in London and £10.90 outside the capital, compared with the adult rate of £9.50 for the national living wage. For a full-time worker, the difference is £2,730 a year, according to the foundation.

The Real Living Wage is currently paid by more than 11,000 employers, is payable to everyone over the age of 18 - with 390,000 people eligible for it - and it is updated every year.

Katherine Chapman, director of the Living Wage Foundation, said: “Paying the real living wage isn’t just the right thing to do for workers, it’s good for business and the wider local economy too.

“In these volatile and tough economic times, paying the real living wage helps tackle in-work poverty and provides a vital economic boost to the UK economy. Through increased spending and productivity gains, the real living wage supports a high wage, high growth economy that we all want to see.”