Rise in National Living Wage from April 2024

The Chancellor is increasing the National Living Wage from £10.42 to £11.44 an hour from April 2024.

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Eligibility for the National Living Wage will also be extended by reducing the age threshold to 21-year-olds for the first time. 

A 21-year-old will get a 12.4% increase, from £10.18 this year to £11.44 next year, worth almost £2,300 a year for a full-time worker. 

National Minimum wage rates for younger workers will also increase. 18-20-year-olds will also get a wage boost to £8.60 per hour – a £1.11 hourly pay bump.

The minimum hourly wage for an apprentice is boosted next year, with an 18-year-old apprentice in an industry like construction seeing their minimum hourly pay increase by over 20%, going from £5.28 to £6.40 an hour.  

Minimum Wage and Living Wage from 1 April 2024

The National Living Wage was introduced in 2016 and currently sets the minimum hourly pay a person over the age of 23 earns when working.

The new rate will now apply to 21- and 22-year-olds, and means that the government has met its target of lifting the National Living Wage to two-thirds of median earnings by 2024.

However, with tax thresholds frozen rather than rising in line with inflation means that more income will be taxed than would otherwise be the case (fiscal drag).

The Chancellor has set out further measures in the Autumn Statement.

Enforcement

Employers who do not pay at least the appropriate minimum wage face penalties as well as being named and shamed by HMRC.  See also HMRC's NMW guidance for employers.

Further information

For more information, check out our Employer Solutions Hub.