National Living Wage Set to Increase in April 2024
In a joint announcement this week, Prime Minister Rishi Sunak and Chancellor of the Exchequer Jeremy Hunt have revealed plans to raise the wages of over two million working individuals. Starting from April 2024, the National Living Wage (NLW) will see an increase to a minimum of £11 per hour.
Presently, the government is awaiting confirmation from the Low Pay Commission (LPC) regarding their recommendation for the upcoming year. Currently set at £10.42 per hour, the NLW is the mandated minimum rate for individuals aged 23 and above. However, the Prime Minister has affirmed that regardless of the LPC's decision, the NLW will rise to at least £11 an hour in the coming year. As a result, the annual income of a full-time worker earning the National Living Wage will increase by over £1,000 in the coming year.
The announcement summarised:
National Living Wage will rise to two-thirds of average earnings
Chancellor commits to Low Pay Commission recommendations, with latest forecasts showing a pay boost next year worth over £1,000 for 2 million low-paid workers
Successive rises mean a full-time worker on the National Living Wage will be over £9,000 better off than they would have been in 2010
This increase will primarily benefit individuals aged 23 and above, who are eligible for the National Living Wage. Over 2 million low-paid workers stand to gain from this adjustment. This announcement follows a series of incremental increases in the National Living Wage since its inception in July 2015. It signifies that a full-time worker earning the National Living Wage will be better off by over £9,000 compared to their income in 2010.
Prime Minister Rishi Sunak said:
"For those working full-time at the National Living Wage, this increase translates to an additional £1,000 or more per year. It signifies that the wages of the most economically vulnerable in our society will be more than £9,000 higher annually compared to 2010. The Conservative government is committed to supporting hardworking individuals."
Source: Gov.uk
