The government has announced that the national minimum wage will rise next year in its highest-ever increase.
As part of the changes, more people than ever will receive the National Living wage – which is currently only available to those over the age of 23.
At present, the National Living wage in the UK is currently £10.42 an hour for workers over 23. Meanwhile, the minimum wage for those aged 21- and 22-year-olds is £10.18.
But from April next year, the national minimum wage will increase by 9.8% to £11.44 an hour from April 2024. The government has said around 2.7 million workers will directly benefit from the increase.
The changes were announced by Chancellor Jeremy Hunt in the Autumn Statement. Mr. Hunt said the changes will see a full-time worker aged 21 receive an annual pay rise of almost £2,300, an increase of around 30%.
The Chancellor called the changes ‘the largest ever cash increase in the national living wage, worth up to £1,800 for a full-time worker.
‘Since the national living wage has been introduced, the proportion of people on low pay, defined as earning less than two-thirds of national median hourly income, has halved.
‘But at the new rate of £11.44 an hour, it delivers our manifesto commitment to eliminate low pay altogether.
‘That means by next year someone working full-time on the national living wage will see their real take-home after-tax pay go up not by 25% but by 30% compared to 2010.’
Rates for apprentices will also rise, from £5.28 to £6.40 per hour, it has been announced.
The annual increases to the minimum wage and national living wage with effect from 1 April 2024 are as follows:
- 21 and over – £11.44 (increase of £1.02)
- 18-20 – £8.60 (increase of £1.11)
- 16-17 and apprentices – £6.40 (increase of £1.12)
The accommodation offset will be £9.99 per day (increase of 89p).
Further reading
Settlement agreements and breach of contract – Oakwood Solicitors
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The government has announced that the national minimum wage will rise next year in its highest-ever increase. As part of the changes, more people than ever will receive the National Living wage – which is currently only available to those over the age of 23. At present, the National Living wage in the UK…
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