The Department for Work and Pensions (DWP) has released updated... Read More
National Living Wage looks set to increase from April 2024
In a recent announcement, the Chancellor confirmed that the government would be embracing the recommendations of the Low Pay Commission (LPC) regarding the National Living Wage (NLW) increase from April 2024. This alignment, which is the government’s typical approach, ensures that wage increases are informed by a thorough assessment of economic factors and labour market conditions.
With the LPC’s recommendations set to be revealed in November, it is widely anticipated that the NLW will increase beyond the £11 per hour mark. In March 2023, a mean estimate of an increase to £11.16 per hour was projected to keep the government on track for its self-imposed target.
The National Living Wage, the highest tier of the national minimum wage (NMW) framework, currently applies to individuals aged 23 and over. However, a significant change is on the horizon as the age threshold for the NLW is set to drop to those 21 and over starting in April 2024. This development reflects the government’s commitment to ensuring that a broader segment of the workforce benefits from the NLW.
As the UK gears up for this increase in the NLW, it is a crucial development for both employees and employers to be aware of. While it promises improved earning potential for workers and critically on this occasion, a larger percentage of the working population, employers must also prepare for the impact on labour costs and ensure compliance with the forthcoming changes in wage rates.
Watch this space for the LPC’s formal recommendations in November, which will provide further clarity on the exact NLW rate for April 2024.