National Minimum Wage boost for nearly 3 million workers next year

The Chancellor has confirmed that the National Living Wage will increase by over a pound an hour from April, marking the largest cash increase in over a decade.

The move will deliver a pay rise of more than £1,800 a year for full-time workers, fulfilling the government’s manifesto pledge to end low pay for those on the National Living Wage.

In a notable expansion, the eligibility for the National Living Wage will now include 21-year-olds for the first time.

This change represents a 12.4% wage increase for 21-year-olds, from £10.18 to £11.44 next year, equating to almost £2,300 a year for a full-time worker.

Jeremy Hunt’s decision to lower the age threshold is a step towards including more young workers in the Living Wage bracket.

The National Minimum wage for younger workers, particularly those aged 18-20, will also see an increase to £8.60 per hour.

Additionally, the minimum hourly wage for an apprentice will jump by over 20%, benefiting young apprentices in industries like construction.

2.7 Million Workers to Benefit

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

The wage hike is seen as a vital measure in ensuring that work is adequately compensated, especially in the current economic climate.

The TUC General Secretary, Paul Nowak, has welcomed the increase, stating it was “badly needed” and a result of pressure from unions and campaigners.

However he said: “With bills sky-high the minimum wage should be raised to £15 an hour as soon possible.

“And let’s not lose sight of the bigger picture. Most working people’s pay packets have fallen in real-terms for the last decade – the worst squeeze in earnings in more than 200 years.

“The Conservatives have overseen record levels of in-work poverty. And they have not lifted a finger to help low-paid workers stuck in insecure work, who are often the victims of wage theft and other abuses.

“The failure of the Tories to deliver on their promise of an employment bill will leave millions at risk of being treated like disposable labour.”

On the role of the Low Pay Commission, the TUC boss added:

“Today’s much-needed rise to the minimum wage shows the enduring impact of having representatives of business and unions on the Low Pay Commission, which recommends the rate.

“This ensures that worker and employer interests as well as the wider economy and labour market are considered. It is a template for better policy making.”

TUC analysis shows that 1.5 million more working people are living in poverty than in 2010.