National Living Wage to rise to £11.44 in April 2024

The National Living Wage will rise by 9.8% in April 2024 to £11.44 per hour for workers aged 21 and over, up from its current level of £10.42.

The uplift will be the largest single increase in the statutory minimum rate of pay since its inception.

Following the publication of the Low Pay Commission’s recommendations on the rates that the National Living Wage should be set at, Chancellor Jeremy Hunt has confirmed he will uplift minimum pay by over £1 per hour.

From 1st April 2024, those aged 18-20 will also see a £1.11 hourly boost to earnings, and £1.12 for those aged 16 and 17, with rates rising to £8.60 and £6.40 per hour respectively. Apprentices will also see their minimum pay rate increase to £6.40.

The increase in pay is set to boost annual earnings for the lowest paid workers by £1,800 and is the single biggest rise in the National Living Wage. In cash terms, the National Living Wage is now almost double the £5.80 per hour minimum wage in 2009.

The Department for Business and Trade estimates 2.7 million workers will directly benefit from the 2024 National Living Wage increase.

Low pay campaigners have welcomed the uplift in pay, but argue it continues to fall short of the amount needed to meet current living costs. Katherine Chapman, Director of the Living Wage Foundation whose members pay a voluntary Living Wage of £12 per hour, commented:

“A rise in the statutory National Living Wage from next April is welcome news for low paid workers but it still falls short of the voluntary real Living Wage which is £12 per hour in the UK and £13.15 per hour for workers in London. There are now 14,000 Living Wage accredited employers across the UK who are committed to always paying everyone in their organisation, including contractors like cleaners and security guards, a real Living Wage based on the cost of living. Despite tough economic times, it has been heartening to see record numbers of businesses join our movement and we’d encourage other organisations who can, to make the Living Wage commitment too.”

Some business groups, however, have warned the latest rise is too steep, and are calling on the Chancellor to offer more support in his upcoming Autumn Statement to ensure firms can meet rising wage costs.

Chief Executive of UK Hospitality, Kate Nicholls, said:

“This is a significant increase in the National Living Wage, rising 10% and 28p more than originally forecast. Such a rise will have significant knock-on impacts on costs as businesses struggle to maintain appropriate wage differentials across all of their staff, including at more experienced levels.

If businesses are expected to deliver these wage levels, there must be action to drive down costs in other areas. The first priority on that list needs to be extending business rates relief and freezing the multiplier at the Autumn Statement.

“Without action on business rates tomorrow, many businesses will not even make it to April to deliver these wage increases and jobs will be lost. That scenario benefits no one.“