The national living wage is in line to be increased following a report from the Low Pay Commission.
The national living wage (officially known as such since 2016) is the minimum hourly pay mandated by law for workers aged 23 and above.
Currently it stands at £10.42 per hour. Different lower rates apply to younger workers usually covered by the national minimum wage.
The Chancellor has committed to the Low Pay Commission’s proposals, with new estimates demonstrating a pay increase worth more than £1,000 for two million low paid workers in the upcoming year.
Through the consecutive raises a full time worker on the national living wage will be over £9,000 better off than their salary was in 2010.
The Chancellor has agreed to implement the Low Pay Commission’s recommendations which will be revealed in November, providing a boost for the lowest paid in the UK.
How much will the national living wage increase by?
This year the Commission is set to suggest figures that will become applicable from April 2024, following their directive which has set a goal for the national living wage to reach two thirds of median earnings by 2024 for employees aged 21 and older, while considering overall economic conditions.
In order to achieve the objective set by the government the desired range should fall within £10.90 and £11.43 providing a full time worker with an extra £1,000 in annual wages.
Anyone aged 23 or older is able to receive the national living wage, with more than two million people on low salaries able to gain from the rise.
This declaration, following numerous increments since it was presented in July 2015, implies that a full time employee getting the national living wage will earn more than £9,000 compared to what they would have made in 2010.
When will the new NMW rate start being used?
According to the Low Pay Commission’s projections the national living wage will rise to more than £11 an hour in April 2024.
Annually the Low Pay Commission which is independent, generates advice for the government regarding the national living wage and national minimum wage rates.
By April 2023 the projected number of people in the UK’s countries and regions who will be paid with the national living wage/national minimum wage will be in the region of 2.5million.
The estimated number is broken down by region and country in the table below:
Region | National Living Wage
North East | 130,000
North West | 300,000
Yorkshire & Humber | 310,000
East Midlands | 200,000
West Midlands | 270,000
South West | 200,000
East of England | 220,000
Greater London | 200,000
South East | 280,000
Wales | 120,000
Scotland | 180,000
Northern Ireland | 130,000
Overall | 2,540,000
