HUNDREDS of thousands of the lowest paid workers across Scotland will from Saturday 1 April receive a pay increase as the National Minimum Wage and National Living wage rise comes into effect.
The increase will put more money in the pockets of 210,000 of the lowest-paid workers across Scotland.
The rate rises include a 9.7% increase in the National Living Wage, from £9.50 per hour to £10.42, the equivalent of more than £1,600 extra per year before tax for someone working full time.
This increase is the largest ever cash increase to the National Living Wage, and highest increase in percentage terms since its introduction 2016, helping to protect the incomes of millions of workers from high cost-of-living.
Business and Trade Minister Kevin Hollinrake said:
“This government is doing everything it can to support hardworking people with the cost of living – from paying energy bills to helping with childcare.
“Today we are now increasing the National Living Wage to record levels, boosting the incomes of almost 3 million people.
“This increase will help Scottish families whilst also supporting Scottish businesses as we focus on our five priorities, including growing the economy and halving inflation.”
The full increases from 1 April 2023 are:
· National Living Wage (23+) has increased 9.7%, from £9.50 to £10.42
· National Minimum wage (21-22) has increased 10.9%, from £9.18 to £10.18
· National Minimum Wage (18-20) has increased 9.7%, from £6.83 to £7.49
· National Minimum Wage (under 18) has increased 9.7%, from £4.81 to £5.28
· Apprentice Rate has increased 9.7% from £4.81 to £5.28
· The Accommodation Offset also increased 4.6% from £8.70 to £9.10
The 9.7% increase to the National Living Wage today keeps the Government on track to achieve its manifesto commitment for the National Living Wage to equal two-thirds of median earnings by 2024, provided economic conditions allow.
UK Government Minister for Scotland John Lamont said:
“The UK Government is helping people in Scotland and right across the UK cope with the challenges brought from the rising cost of living. Today’s boost to the national living wage and national minimum wage will ensure those in the lowest paid jobs have more money in their pockets.
“More than 200,000 Scottish workers will see a real, tangible difference from this important measure – and this comes on top of the additional help available for households, including maintaining the Energy Price Guarantee.”
Further government action also comes into effect today to support households with the cost of living, including extending the Energy Price Guarantee at its current level for another three months, which keeps energy bills at £2,500 for a typical household until the end of June. The freeze on fuel duty has also been extended, saving the average car driver in the UK £100 over the next year.
The National Living Wage and National Minimum Wage have increased every year since their introduction – and this year, there is no exception. The UK Government is committed to providing both workers and businesses with certainty as we deal with cost of living challenges.
The 2023 National Minimum Wage for 21 and 22 years is 52% higher and the National Minimum Wage for apprentices is 60% higher than the 2015 rates.
The uplift will particularly benefit workers in sectors such as retail, hospitality and cleaning and maintenance, as well as women from black, Asian and ethnic minority (BAME) backgrounds.
