Ahead of today’s Autumn Statement, the Chancellor has confirmed a 9.7% rise in the hourly National living wage (“NLW”) rate from £10.42 to £11.44 p/hour. In addition, NLW from April 2024 will apply to 21 year olds (pre April 2024 NLW applies only to age 23 and over).
Workers between the age of 18-20 will receive a pay rise of £1.11 p/hr to £8.60 p/hour.
Apprentices will see their hourly rate increase from £5.28 to £6.40 p/hr.
Since 2010, the NLW has doubled from around £10,500 to nearly £21,000 p.a.
This significant announcement is to meet the Government’s pledge to end low pay. The cost of paying this level of wage across a workforce will in real terms have a significant impact particularly on small employers so hopefully the Chancellor will have some assistance for employers too in today’s Autumn Statement.