Three million low-paid earners will see the biggest ever increase to the National Living Wage from April 2024, HM Treasury has announced today. The pay rise will be worth more than £1,800 a year for a full-time worker.
National Living Wage eligibility will also be extended, reducing the age threshold from 23-year-olds to 21-year-olds.
The increase will see the National Living Wage rise by more than £1 an hour from April, from £10.42 to £11.44.
An almost 10 per cent pay boost, is the biggest cash increase to the National Living Wage in more than a decade.
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It means a 21-year-old will get a 12.4 per cent pay increase, from £10.18 per hour this year to £11.44 next year, worth almost £2,300 a year for a full-time worker.
The National Minimum Wage rate which applies for younger workers will also rise, with 18 to 20-year-olds getting a wage boost to £8.60 per hour – a £1.11 hourly pay bump.
Chancellor of the Exchequer Jeremy Hunt said: “Next April all full-time workers on the National Living Wage will get a pay rise of over £1,800 a year. That will end low pay in this country, delivering on our manifesto promise.
“The National Living Wage has helped halve the number of people on low pay since 2010, making sure work always pays.”
The minimum hourly wage for an apprentice has also been boosted from April next year.
An 18-year-old apprentice in an industry such as construction will see their minimum hourly pay increase by more than 20 per cent – rising from £5.28 to £6.40 an hour.
National Living Wage and National Minimum Wage rates for 2024
21 and over: £11.44 per hour
18 to 20: £8.60 per hour
Apprentice: £6.40 per hour
National Living Wage and National Minimum Wage rates for 2023
23 and over: £10.42 per hour
21 to 22: £10.18 per hour
18 to 20: £7.49 per hour
Under 18: £5.28 per hour
Apprentice: £5.28 per cent
The National Living Wage rates are set by the Government
The National Living Wage is different to the Real Living Wage – with the latter being a voluntary rate based on the cost of living.
It’s set by the Living Wage Foundation. The 2023/24 Real Living Wage is £12 across UK and £13.15 in London.
The Real Living Wage rates for 2023-24 were announced on October 24, 2023.
Employers who sign up to the voluntary Real Living Wage had six months, until May 1, to implement them.