In his latest announcement, Chancellor Jeremy Hunt revealed that the National Living Wage (NLW) is set to experience its largest-ever increase, marking a historic milestone for workers across the UK. This significant adjustment will result in the NLW reaching nearly £21,000 a year for a full-time worker, elevating the hourly rate from £10.42 to £11.44.
Since 2010, the NLW has been on the rise, steadily increasing to address the challenges of low pay in the country. The upcoming raise, representing a doubling in cash terms over the past fourteen years, shows the government's commitment to improving the standard of living for workers.
One of the main aspects of this announcement is the extension of NLW eligibility to 21 year-olds, who will now experience a 12.4% increase in their hourly rate. This adjustment will see their earnings rise from £10.18 this year to £11.44 in 2024, translating to an additional £2,300 annually for a full-time worker in this age group. This move is expected to benefit a large portion of the workforce and addresses the wage-gaps amongst different age groups.
The National Minimum Wage (NMW) rates for younger workers are also set to increase. 18–20 year-olds will witness a substantial £1.11 raise, bringing their hourly rate to £8.60. The Department for Business and Trade estimates that this adjustment will result in increased income for approximately 2.7 million workers, offering tangible improvements to their financial well-being.
The government has also announced a considerable increase in the minimum hourly wage for apprentices. An 18 year-old apprentice will see their minimum hourly pay increase by over 20%, from £5.28 to £6.40 - an encouraging development for those pursuing skills development and vocational training.
Chancellor Jeremy Hunt 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."
Read more: Record wage boost for nearly 3 million workers next year - GOV.UK (www.gov.uk)
As the National Living Wage takes a historic leap, the government's commitment to improving the financial well-being of workers is evident. The upcoming increase, particularly for 21-year-olds and apprentices, demonstrates a comprehensive approach to addressing wage-gaps and promoting economic stability.
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