The Chancellor has decided that the Class 1 NIC thresholds and rates for 2023-2024 will be frozen at the amounts introduced on the 6th of November 2022 – the date of the last rate changes. The health and social care levy, which was due to take effect from the 6th of April 2023, will no longer be introduced.
Currently, the rates of statutory sick pay, along with maternity, paternity and adoption pay, have not been announced. However, as state benefits and pensions have been uprated to 10.1%, we assume the same will apply to statutory payments.
In line with the inflation rate for periods starting on the 1st of April 2023, the national minimum wage rates will increase. The new hourly rates will be the following:
| Pay Periods From | Living Wage: Age 23 | Adult: Age 21-22 | Youth: Age 18-20 | Under 18 | Apprentice | Accommodation Daily Off-Set |
|---|---|---|---|---|---|---|
| £/hr | £/hr | £/hr | £/hr | £/hr | £/hr | |
| 1st of April 2023 | 10.42 | 10.18 | 7.49 | 5.28 | 5.28 | 9.10 |
| 1st of April 2022 | 9.50 | 9.18 | 6.83 | 4.81 | 4.81 | 8.70 |
From 2024, the living wage age threshold of 23 will also reduce to 21, meaning there will only be one adult rate.