The National Living Wage, basically the minimum wage for people aged 21 and above, is to increase to £11.44, a rise of £1.02, starting April 2024.
The current hourly living wage is £10.42 - but this applies to people aged 23 and over:
| 23 and over | 21 to 22 | 18 to 20 | Under 18 | Apprentice | |
|---|---|---|---|---|---|
| Rates until April 2024 | £10.42 | £10.18 | £7.49 | £5.28 | £5.28 |
From next year the living wage will apply for people aged 21 and over - thereby making it a larger increase as the additional age group is brought in.
It was confirmed today by the Chancellor, Jeremy Hunt, that following the low pay commission’s guidance he would be accepting the rise that would directly affect the pay of around two million taxpayers.
One the eve of tomorrow’s 2023 Autumn Statement, the Chancellor took the opportunity to re-affirm his party’s achievement of a £9,000 increase to the pay of the lowest paid workers over the last thirteen years of Conservative governance.
We await any decision on whether the personal allowance and higher rate tax thresholds will now also be increased to match this pace, rather than continuing their freeze to 2028, a further five years.