The Government has announced that it’s accepted the Low Pay Commission’s (LPC) recommendations on minimum wage rates to apply from 1 April 2024.
The LPC is an independent public body that advises the Government on the rates of the National Minimum Wage (NMW) including the National Living Wage (NLW). The NLW was introduced in 2016 and currently sets the minimum hourly pay for those over 23.
In 2019 the Government set a target for the National Living Wage to reach two-thirds of median earnings by 2024 for workers aged 21 and over, taking economic conditions into account. The acceptance of the LPC’s recommendations will achieve this.
The recommendations not only increase the rate of the NMW including the NLW – this will be the largest ever increase in the minimum wage in cash terms and the first time it has increased by more than £1 – but also lowers the age threshold for the NLW to include those aged 21 and 22 years old.
The new rates from 1st April 2024 will be:
|NMW rate from 1 April 2024||Increase in pence||Percentage Increase|
|National Living Wage (21 and over)||£11.44||£1.02||9.8%|
|18 – 20-year-old rate||£8.60||£1.11||14.8%|
|16 – 17-year-old rate||£6.40||£1.12||21.2%|
If you would like to read the LPC’s recommendations to the Government, please follow this link.