The Government announced as part of the Autumn Statement that the National Minimum Wage (NMW) and National Living Wage (NLW) rates will be increasing from 1st April 2024.
This will be the largest ever increase to the minimum wage after the Government accepted the Low Pay Commission’s recommendations.
The NLW is the statutory minimum wage for workers currently aged 23 and over; this threshold was lowered to 23 from 25 in April 2021 and is to be lowered again to 21 from April 2024. The NLW is different to the UK Living Wage and the London Living Wage which are voluntary pay benchmarks that are not legally binding and allow employers the discretion to sign up to if they wish.
The increases to NMW and NLW to take effect from 1st April 2024 are:
New rate from 1st April 2024 | Increase in pence | |
NLW – 21 and over | £11.44 | £1.02 |
18 – 20 | £8.60 | £1.11 |
16 -17 | £6.40 | £1.12 |
Apprentice Rate | £6.40 | £1.12 |
Accommodation Offset | £9.99 | £0.89 |
The Low Pay Commission recommended the above NLW rate in an attempt to meet the Government’s target for the NLW to reach two-thirds of median earnings in 2024. However, with the economy presently facing a number of challenges, these increases might be difficult for many employers to meet.
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