What the changes to the National Living Wage mean for you
In the Autumn Statement, the Chancellor has confirmed an increase to the National Living Wage, the National Minimum Wage and the minimum hourly wage for apprentices.
These changes will come into effect from April 2024.
How much is the National Living Wage
From April, the National Living Wage will increase from £10.42 to £11.44 an hour.
This is a pay boost of over £1,800 a year for a full-time worker.
This 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.
What is the age of the National Minimum Wage?
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.
From April, the age threshold for the National Living Wage will be extended to 21-year-olds for the first time.
That means 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.
What is the minimum hourly wage for an apprentice?
Apprentices are entitled to the apprentice rate if they’re either:
· under 19
· 19 or over and in the first year of their apprenticeship
From April, the minimum hourly wage for an apprentice will go up.
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.