Pensions and Benefits
Last year saw the first real key change in the calculation of the State Pension with the temporary removal of the triple lock scheme of increase. Instead of the usual calculation using the highest of inflation, 2.5% or average earnings growth, the government set the rate at 2.5% due to the variation created during the pandemic.
The recent statement has confirmed that this would no longer be applicable with the triple lock coming back into force and therefore due to inflation we will see an increase in April 2023 of 10.1% which is based in Inflation in September 2022. This will be supplemented by an addition cost of living payment of £300 to support pensioners households.
The same level of increase of 10.1% will also be seen across benefits from the same time point.
National Minimum and Living Wage
Next year will see a larger than usual rise in National living wage with an increase of 9.7%. This will take it from its current level of £9.50 to £10.42 from the 1st of April 2023. The government accepted the LPC’s recommendations for the other national minimum wage rates from the same period. This therefore looks like the below:
- The National Living Wage – applicable to staff 23 and over goes from £9.50 to £10.42
- The National Minimum Wage – applicable to staff aged 21 to 22 goes from £9.18 to £10.18
- The National Minimum Wage – applicable to staff aged 18 to 20 goes from £6.83 to £7.49
- The National Minimum Wage – applicable to staff aged 16 to 17 goes from £4.81 to £5.28
- The Apprenticeship Rate remains aligned to the 18 under rate shown above
- Finally, the accommodation offset increases from £8.70 to £9.10
