National Living Wage set to increase to £11 next April, chancellor confirms
Chancellor Jeremy Hunt has used his speech at the Conservative party conference in Manchester today to confirm a an increase in the national living wage from next April.
Mr Hunt confirmed the National Living Wage (NLW) will rise £11, adhering to the forthcoming recommendations of the Low Pay Commission.
The move is expected boost the incomes of around 2 million of the lowest-paid people in the UK, 120,000 of them in Wales.
The uplift, from April 2024, will be worth around £1,000 in the next year.
People currently aged 23 and over are eligible for the National Living Wage, with over 2 million workers on low pay set to benefit from the increase.
Each year, the independent Low Pay Commission produces recommendations to the Government on National Living Wage and National Minimum Wage rates.
This year it is due to make recommendations for the rates that will take effect from April 2024, based on their remit which sets a target for the National Living Wage to reach two-thirds of median earnings by 2024 for workers aged 21 and over, taking economic conditions into account.
Welsh Conservatives Shadow Economy Minister Paul Davies MS, said: “It is welcome news to hear this morning that the Chancellor is planning to increase the National Living Wage – putting more money into the pay-packets of hard-working people and families right across the UK.
“This move from the UK Conservative Government will benefit two million of our lowest-paid workers, meaning the annual earnings of a full-time worker on the national living wage would increase by £1,000 next year.
National Living Wage vs National Minimum Wage
The National Minimum Wage (NMW) in the UK is the lowest legal amount that employers must pay their workers for each hour of work.
It ensures workers earn a fair income that meets basic living standards, protecting them from exploitation.
The rates vary based on the worker’s age, apprenticeship status, and are regularly updated to keep pace with living costs. Workers must be at least school-leaving age to qualify for it.
The government raised the minimum wage and the National Living Wage (NLW) for the fiscal year 2023/24.
The new rates, as of April 1, 2023, range from £5.28 for apprentices and those under 18, to £10.42 for workers aged 23 and over.
The NLW, applicable for those aged 23 and above, is a higher rate of minimum wage, reflecting the increased cost of living in adulthood.
Aside from the statutory National Minimum and National Living Wages, there’s also a voluntary UK Living Wage, currently at £10.90 an hour, based on the basic cost of living in the UK, which employers may choose to pay.
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