Last week the Chancellor Rishi Sunak announced in his Budget speech to Parliament that the National Living Wage would increase by 6.6% to £9.50 per hour for those aged 23 and above from 1 April 2022.
New rates from April 2022
The new NLW and NMW rates for 2022 for those aged under 23 have now been confirmed and the new rates are as follows:
|Age||1 April 2021||1 April 2022|
|Age 23 and over||£8.91 per hour||£9.50 per hour|
|Age 21 to 22 years old||£8.36 per hour||£9.18 per hour|
|18 to 20 years old||£6.56 per hour||£6.83 per hour|
|16 to 17 years old||£4.62 per hour||£4.81 per hour|
|Apprentice rate for under 19 or|
over 19 in 1st year of apprenticeship
|£4.30 per hour||£4.81 per hour|
Voluntary Living Wage increases
Further to this, the Living Wage Foundation often called the Real Living Wage, announced on 15 November 2021 that the Living Wage rates would increase from that day. The new rates will be £9.50 per hour for those aged 18 and above for outside London and £11.05 per hour for the London area.
The Living Wage is not mandatory but applies to the employers who have signed up for the scheme. Currently there are nearly 9,000 employers involved in the accredited scheme.
Employers who have joined the scheme normally have up to six months to implement the increase to the hourly rates.