[UK] New laws for 2023 on national living wage, sick pay and pensions

The new year has brought a number of legislative changes to the UK and many of the new regulations coming into force will be geared towards supporting the nation’s most vulnerable people, The News reports.

Many payments, including the national living wage, sick pay, universal credit and pensions, will go up in an attempt to combat soaring inflation. 

The new regulations include:

Wage increases

From April 2023, the National Living Wage (NLW) will rise to £10.42 an hour. All employees aged 23 and over qualify for the NLW.

It will be a legal requirement for all UK employers to pay any workers who fit the age bracket at this new rate from April 1. Workers under 23 will also see different minimum wage levels.

The new rates reportedly include a minimum of £10.18 per hour for 21- to 22-year-olds, £7.49 per hour for 18- to 20-year-olds, £5.28 for 16- to 17-year-olds and £5.28 for apprentices.

Statutory sick pay, maternity pay and paternity pay increases

Several government payments will increase in the new financial year between April 2023 and 2024. Statutory sick pay will rise from £99.35 per week to £109.40 per week.

The 'standard rate' for maternity allowance/statutory maternity pay and paternity pay is also set to increase. It will rise from £156.66 per week to £172.48 per week.

Benefit and pension increases

It was confirmed by the Department for Work and Pensions (DWP) that benefits will rise in line with the consumer price index (CPI) from April 2023, as announced by chancellor Jeremy Hunt in his autumn statement.

The increase will reportedly be alongside the CPI of 10.1 per cent; taken from the figure from September. This will include benefits such as working tax credit, child benefit, child tax credit, universal credit, attendance allowance and PIP.

Mr Hunt also announced in the statement that the triple lock for pensions will stay in place. This was suspended during the pandemic.

The triple lock means pensions will rise in line with inflation at 10.1 per cent from April.

Tax rises

The threshold for paying the top 45 per cent tax rate will be lowered from £150,000 to £125,140 in April. Jeremy Hunt announced that the 40 per cent tax threshold will be frozen until 2028.

This means more people will pay tax at the higher rate in coming years, as wages rise. The 20 per cent threshold will reportedly be frozen.

The new year has brought a number of legislative changes to the UK and many of the new regulations coming into force will be geared towards supporting the nation’s most vulnerable people, The News reports.

Many payments, including the national living wage, sick pay, universal credit and pensions, will go up in an attempt to combat soaring inflation. 

The new regulations include:

Wage increases

From April 2023, the National Living Wage (NLW) will rise to £10.42 an hour. All employees aged 23 and over qualify for the NLW.

It will be a legal requirement for all UK employers to pay any workers who fit the age bracket at this new rate from April 1. Workers under 23 will also see different minimum wage levels.

The new rates reportedly include a minimum of £10.18 per hour for 21- to 22-year-olds, £7.49 per hour for 18- to 20-year-olds, £5.28 for 16- to 17-year-olds and £5.28 for apprentices.

Statutory sick pay, maternity pay and paternity pay increases

Several government payments will increase in the new financial year between April 2023 and 2024. Statutory sick pay will rise from £99.35 per week to £109.40 per week.

The 'standard rate' for maternity allowance/statutory maternity pay and paternity pay is also set to increase. It will rise from £156.66 per week to £172.48 per week.

Benefit and pension increases

It was confirmed by the Department for Work and Pensions (DWP) that benefits will rise in line with the consumer price index (CPI) from April 2023, as announced by chancellor Jeremy Hunt in his autumn statement.

The increase will reportedly be alongside the CPI of 10.1 per cent; taken from the figure from September. This will include benefits such as working tax credit, child benefit, child tax credit, universal credit, attendance allowance and PIP.

Mr Hunt also announced in the statement that the triple lock for pensions will stay in place. This was suspended during the pandemic.

The triple lock means pensions will rise in line with inflation at 10.1 per cent from April.

Tax rises

The threshold for paying the top 45 per cent tax rate will be lowered from £150,000 to £125,140 in April. Jeremy Hunt announced that the 40 per cent tax threshold will be frozen until 2028.

This means more people will pay tax at the higher rate in coming years, as wages rise. The 20 per cent threshold will reportedly be frozen.