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On 21 November 2023, the government announced its acceptance of the largest minimum wage increase in cash terms to date and in this article Employment Law Partner Claire Brook outlines the changes coming to the minimum wage in 2024.

How much will the minimum wage increase?

From April 2024, each rate of the national minimum wage will increase by over £1, in accordance with the Low Pay Commission’s (LPC) recommendations.

The LPC has commented that the “size of this increase is driven by the strength of pay growth across the economy, which is forecast to continue into next year”

Another significant change within the announcement is the extension of the National Living Wage (NLW) to workers aged 21 and over from April 2024. Currently, the NLW only applies to workers aged 23 and over.

The LPC considers that these changes will “restore the real value of the NLW, which has been eroded through the recent cost of living crisis” without risking employment prospects.

The changes to minimum wage rates from April 2024 are set out in the table below:

 

NMW rate from 1 April 2024 Increase in pence Percentage increase
National Living Wage (21 and over)

£11.44

£1.02

9.8%

18-20 rate

£8.60

£1.11

14.8%

16-17 rate

£6.40

£1.12

21.2%

Apprentice rate

£6.40

£1.12

21.2%

Accommodation offset

£9.99

£0.89

9.8%

This will create significant additional costs for employers in several sectors, who will have to budget to deliver pay increases to take effect in less than 5 months’ and undertake a review to assess whether incremental increases are necessary to maintain differentials in pay bandings based on seniority.

Contact our employment law team

If you require guidance in the wake of the latest changes, please don't hesitate to contact our highly experienced employment law solicitors. Complete the enquiry form below and a member of our team will be in touch.

Key Contact

Claire Brook

Claire Brook

Employment Law Partner


Claire advises a wide range of employers on all aspects of employment law, from recruitment and employment, through to complex dismissals and representation at employment tribunals.

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