- Biggest ever increase to the National Living Wage, worth over
£1,800 a year for a full-time worker, fulfils manifesto pledge to
end low pay.
- Since 2010 the National Living Wage will have doubled in cash
terms from around £10,500 to nearly £21,000 a year for a
full-time worker.
- For the first time, 21-year-olds on the National Living Wage
will always earn two-thirds of average earnings.
The Chancellor will deliver a pay rise of more than £1,800 a year
for a full-time worker, as he confirms that the National Living
Wage will increase by over a pound an hour from April.
The almost 10% pay boost, from £10.42 to £11.44 an hour, is the
biggest cash increase in the National Living Wage in more than a
decade and fulfils the government’s manifesto pledge to end low
pay for those on the National Living Wage.
Eligibility for the National Living Wage will also be extended by
reducing the age threshold to 21-year-olds for the first
time. 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.
National Minimum wage rates for younger workers will also
increase. 18-20-year-olds will also get a wage boost to £8.60 per
hour – a £1.11 hourly pay bump.
The Department for Business and Trade estimate 2.7 million
workers will directly benefit from the 2024 National Living Wage
increase.
Chancellor of the Exchequer said:
Next April all full-time workers on the National Living Wage will
get a pay rise of over £1,800 a year. That will end low pay in
this country, delivering on our manifesto promise.
The National Living Wage has helped halve the number of people on
low pay since 2010, making sure work always pays.
The minimum hourly wage for an apprentice is boosted next year,
with an 18-year-old apprentice in an industry like construction
seeing their minimum hourly pay increase by over 20%, going from
£5.28 to £6.40 an hour.
The National Living Wage was introduced in 2016 and currently
sets the minimum hourly pay a person over the age of 23 earns
when working. The new rate will now apply to 21- and
22-year-olds, and means that the government has met its ambitious
target of lifting the National Living Wage to two-thirds of
median earnings by 2024, ending low hourly pay for those on the
National Living Wage.
Since 2010, the proportion of workers on low hourly pay has more
than halved from 21.3% to 8.9%, supported by increases to the
National Living Wage. Personal tax thresholds have been doubled,
meaning a working person can now earn £1,000 a month tax-free for
the first time.
Getting more people into work and ensuring work pays is a
priority for the government. The Chancellor will set out further
measures in tomorrow’s Autumn Statement.
Notes to editors
- The OECD defines low pay as those earning less than
two-thirds of average earnings.
- The National Minimum Wage rate for those aged 22+ was £5.80
from 1 October 2009 to 31st September 2010 . A worker working
full-time would have received around £10,500 a year gross,
whereas it will be almost £21,500 for a NLW worker from April
2024.
