The Chancellor Jeremy Hunt has confirmed that the national living wage will increase from April 2023.
It will rise from from £9.50 an hour to £10.42 an hour, a 9.7% increase.
But what's the difference between the National Living Wage and Real Living Wage, which is higher? We take a look.
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What is the National Living Wage?
The national living wage applies to workers aged 23 and over.
Those of school leaving age up to 23 are entitled to the national minimum wage.
The current rates set in April 2022 are:
Aged 23 and over: £9.50
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Aged 21 & 22: £9.18
Aged 18 to 20: £6.83
Under 18: £4.81
Apprentice: £4.81
More details on the rates can be found on the.
What is the Real Living Wage?
The real living wage is set by the , to reflect the real cost of living.
It does not apply to every worker - just those employed by organisations who have signed up to the Living Wage Foundation.
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The real Living Wage is an independently calculated figure used by the Living Wage foundation that is based on what people need to get by after taking into account costs like housing, utility bills and food.
It should not be confused with The Minimum Wage, a statutory minimum wage for under 23s or the National Living Wage, for over 23s, which is set by law.
The difference was made more unclear when in April 2016, the government introduced the higher minimum wage rate for all staff over 25 years of age, renaming it the ‘national living wage’ from its original name, the 'national minimum wage'.
The Real Living Wage current rates were set in September 2022 and are £10.90 and £11.95 in London.
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