![]() The Department for Business and Trade estimates 2.7 million workers will directly benefit from the increase.īryan Sanderson, the chair of the Low Pay Commission, said: “The national living wage has delivered an improved standard of living to thousands of people who care for our children and elderly, work in farms and shops and at many other essential jobs. ![]() ![]() The Treasury said the new rate will now apply to 21- and 22-year-olds, and meant the government had met its target of lifting the NLW to two-thirds of median earnings by 2024. The NLW was introduced in 2016 and currently sets the minimum hourly pay for those over 23. “The national living wage has helped halve the number of people on low pay since 2010, making sure work always pays.” That will end low pay in this country, delivering on our manifesto promise. The chancellor said: “Next April all full-time workers on the national living wage will get a pay rise of over £1,800 a year. National minimum wage rates for younger workers will also increase, with those aged between 18 and 20 getting a wage boost to £8.60 an hour – a £1.11 hourly pay rise. The increase from £10.42 to £11.44 comes against a backdrop of a cost of living crisis in which inflation peaked at 11.1% – the highest in 40 years.Įligibility for the national living wage (NLW) will also be extended by reducing the age threshold from 23 to 21.Īccording to the Treasury, a 21-year-old will get a 12.4% increase, from £10.18 this year to £11.44 next year, worth almost £2,300 a year for a full-time worker. The chancellor accepted in full the recommendation of the LPC – the body set up to advise ministers on the level of the national legal minimum wage – by announcing the largest ever cash increase in the low pay floor.
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