The National Living Wage will be increased by the most in history for three million low-paid workers beginning in April 2024, according to HM Treasury.
For a full-time employee, the boost will be worth more than £1,800 per year. The eligibility age for the National Living Wage will also be reduced from 23 to 21 years old.
The National Living Wage will raise by more than £1 per hour beginning in April, from £10.42 to £11.44. So far, this nearly 10% pay raise is the largest cash increase to the National Living Wage in more than a decade.
It translates to a 12.4% salary raise for a 21-year-old, from £10.18 per hour this year to £11.44 next year, or about £2,300 per year for a full-time worker.
The National Minimum Wage rate for younger workers will also rise, with 18 to 20-year-olds earning £8.60 per hour – a £1.11 hourly pay increase.
National Living Wage and National Minimum Wage rates for 2024
21 and over: £11.44 per hour
18 to 20: £8.60 per hour
Apprentice: £6.40 per hour
National Living Wage and National Minimum Wage rates for 2023
23 and over: £10.42 per hour
21 to 22: £10.18 per hour
18 to 20: £7.49 per hour
Under 18: £5.28 per hour
Apprentice: £5.28 per cent
The National Living Wage differs from the Real Living Wage, which is a voluntary wage based on the cost of living. The Real Living Wage in 2023/24 is £12 in the UK and £13.15 in London.