Katy Hampton unravels the benefits and challenges of 2024’s minimum wage boost
In a landmark move, the government has officially accepted the recommendations put forward by the Low Pay Commission (LPC) for substantial increases in the National Living Wage (NLW) and National Minimum Wage (NMW) rates, set to take effect from 1 April 2024. This announcement, made as part of the Autumn Statement, represents the largest-ever increase in the minimum wage and is expected to significantly impact both workers and employers.
Forward-looking changes to NLW
The NLW, currently the statutory minimum wage for workers aged 23 and over, will experience a remarkable 9.8% increase from £10.42 to £11.44. This surge in the NLW is not only substantial in percentage terms but also marks the first time the minimum wage has increased by more than £1. The LPC’s chair, Bryan Sanderson, emphasised that this increase aims to achieve the government’s target of two-thirds of median hourly pay for those aged 21 and over.
Moreover, the NLW will now be extended to cover 21 and 22-year-olds, fulfilling a recommendation first made by the LPC in 2019. Sanderson applauds the positive impact the NLW has had on various essential jobs, citing a significant improvement in the standard of living for workers in sectors such as childcare, agriculture, and retail.
Download the full article below: