LARGEST EVER CASH INCREASE TO THE MINIMUM WAGE

Posted on 21st November 2023

The Government has announced its acceptance of the Low Pay Commission’s recommendations on minimum wage rates to apply from April 2024. The National Living Wage (NLW) will be equal to two-thirds of median hourly pay for those aged 21 and over. In addition, from April 2024 the NLW will be extended to 21 and 22 year olds. The rates recommended by the LPC are set out below.

The gov.uk press releases states "As every year, we heard evidence from employers across the UK about the pressures they faced. Costs in most sectors have continued to rise, and uncertainty has made it difficult to plan for and invest in the future. Small and medium-sized businesses report the greatest concerns, and firms in low-paying sectors are more worried about reduced consumer demand, costs of energy and the cost of labour than firms in other sectors.

At the same time, the low-paid workers we spoke to this year painted a picture of growing hardship. Those on the lowest incomes have felt the rising cost of living most sharply. We heard accounts of foodbank usage and indebtedness as targeted support introduced last year began to fall away.

We believe our recommendation will restore the real value of the NLW, which has been eroded through the recent cost of living crisis. Our judgement is that this increase will not cause significant risk to employment prospects.

Alongside the NLW, we have recommended large increases to NMW rates for young workers and apprentices. These increases reflect the strength of the youth labour market and aim to prevent the wage floor for young people being cut adrift from prevailing wage rates in the wider labour market".

For more information view the full press release at www.gov.uk