In a landmark move, the Chancellor of the Exchequer, Jeremy Hunt, has announced a historic wage boost that will positively impact almost 3 million workers across the country. The National Living Wage, set to increase by over a pound an hour from April 2024, will result in a significant pay rise of more than £1,800 per year for a full-time worker.
This boost represents the largest cash increase in the National Living Wage in over a decade, fulfilling the government's manifesto pledge to eradicate low pay for those on the National Living Wage. The hourly rate will surge from £10.42 to £11.44, constituting an impressive 10% increase.
The expansion of eligibility is another groundbreaking aspect of this announcement. For the first time, 21-year-olds on the National Living Wage will always earn two-thirds of average earnings, ensuring a fair and equitable wage structure. A 21-year-old worker will witness a remarkable 12.4% increase, from £10.18 to £11.44, translating to an annual gain of almost £2,300.
Younger workers will also benefit from the upward trend in wage rates. 18-20-year-olds will see their hourly wage rise to £8.60, enjoying a substantial £1.11 increase.
The Department for Business and Trade estimates that a staggering 2.7 million workers will directly benefit from this wage increase. Chancellor Jeremy Hunt expressed his commitment, stating, "Next April, all full-time workers on the National Living Wage will get a pay rise of over £1,800 a year. That will end low pay in this country, delivering on our manifesto promise."
Since its introduction in 2016, the National Living Wage has played a pivotal role in reducing the number of people on low pay. The wage has doubled in cash terms since 2010, rising from around £10,500 to nearly £21,000 a year for a full-time worker. The government has also met its ambitious target of lifting the National Living Wage to two-thirds of median earnings by 2024.
To further underscore the government's commitment to ensuring work pays, the Chancellor will reveal additional measures in tomorrow's Autumn Statement. The move is anticipated to not only uplift the financial well-being of millions but also contribute to the ongoing efforts to create a fair and just economic landscape.
Record wage boost for nearly 3 million workers next year – Gov.UK, 21 November 2023.