MILLIONS of workers will see their pay checks go up from today, giving them an increase of £1,600 a year.
The 10% hike will see the national living wage rise from £9.50 to £10.42 an hour from today.
The move will mean a payday rise for more than 2.5million Brits.
People on the national living wage will see their pay packets increase by 92p which means an additional £32.20 a week and £1,674.40 a year.
Chancellor Jeremy Hunt first announced the hike as part of last November's Autumn Statement and the Treasury has confirmed that it will still go ahead following the Spring Budget.
He said: "This government introduced the national living wage which has been a giant step to eliminating low pay.
"So today I am accepting the recommendation of the Low Pay Commission to increase it next year by 9.7%."
What is the National Living Wage?
The National Living Wage is the government's minimum rate employers must pay employees aged 23 or over for each hour worked.
The difference between this and the Real Living Wage is that it's decided by the government and is law, with the latter being voluntary.
It was introduced by Tony Blair's New Labour government in 1999 and was originally called the National Minimum Wage.
In 2011, a campaign group called the Living Wage Foundation was founded to persuade employers to voluntarily pay what it called the National Living Wage.
The National Living Wage was an independently-calculated estimate of the rate workers needed to cover their basic needs, and was higher than the National Minimum Wage.
What is the National Minimum Wage?
Those younger than 23 can be paid the national minimum wage instead, which is currently £9.18 for 21 to 22-year-olds and £6.83 for those aged 18 to 20.
These will rise to £10.18 and £7.49 an hour respectively from today too.
The rates for the national minimum wage for 2023/24 are as follows:
- Those aged 21-22 will get at least £10.18 an hour
- Workers aged 23 and over will get £10.42
- For 18 to 20-year-olds, the minimum wage will go up to £7.49 an hour
- Under-18s will be entitled to a minimum of £5.28 an hour
- The apprenticeship wage will go up to £5.28
What help can I get if I'm struggling?
While this rise will be welcomed by many, it might not make a massive difference amid rising costs.
But there is help you can get.
For example, the first £301 of the £900 cost of living payment will be hitting eligible households bank accounts within weeks.
This payment will be tax-free and will not have any effect on any existing benefit payments that you receive.
More than eight million people will receive the payment.
The weather is still chilly in some areas of the UK right now, which means you could be entitled to an extra £25 per day.
However, this is only the case if temperatures plummet to below zero degrees celsius in your area.
For each seven-day period of low temperatures, the payment is worth £25 and if you get certain benefits you should get the cash automatically.
Thousands of people could also get help through the Household Support Fund.
It was originally meant to close at the end of March but has since been extended.
The money is paid through your council and each one will have a different pot of money.
Families can get help towards their grocery shopping, child costs and energy bills.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
