"In today’s Autumn Statement, the Chancellor confirmed the rate of the National Living Wage will increase from £9.50 per hour to £10.42 per hour in April 2023. This 9.7% increase marks the largest ever increase to National Living Wage (NLW) rates. Employers should work with HR and payroll teams to implement the change and communicate it with the wider workforce.
"However, it’s important to remember that the NLW only applies to workers aged 23 and over; the remaining rates in the National Minimum Wage structure are still to be announced.
"Whilst the increase is welcome news for employees, many will still struggle as inflation and the cost-of-living continues to put pressure on household incomes. As such, employers should ensure there is wider support in place to facilitate positive financial wellbeing.
"Similarly, increased wage bills may cause concern for employers who are facing soaring expenses in all parts of their business. This could lead to tough decisions and the need for organisational changes. Where this is this case, employers must make sure they follow fair processes and consult fully with their workforce."