As of April 2023, millions of workers are benefitting from record increases to the National Minimum Wage and National Living Wage (NLW). The NLW, which this Government introduced in 2016, rose by 9.7 per cent to £10.42 an hour. These increases follow recommendations made to the Government by the independent Low Pay Commission in autumn 2022.
Moreover, I strongly welcome that the Government has accepted the recommendations of the independent Pay Review Bodies in full, providing public sector workers with a consolidated wage increase of at least 6 per cent. The Government’s plan to deliver these pay rises is fully costed and will not mean reductions in frontline services. This is a fair deal that recognises the anxiety caused by cost-of-living pressures, supports recruitment and retention, and delivers one of the highest settlements in three decades.
The deal is also fiscally responsible, delivering pay rises that are broadly in line with the private sector. It would be neither fair nor affordable to meet unsustainable demands for pay rises well into double digits. To do so would be fiscally irresponsible, increasing national debt, passing the buck to future generations, weakening the foundations of our economy, and further fuelling inflation. I welcome that getting inflation down - the best tax cut there is - remains a top priority for the Prime Minister.