National Living wage to rise from April 2024

The National Living Wage (NLW) will rise to at least £11 an hour from April 2024, as confirmed by Chancellor Jeremy Hunt recently.

The Chancellor confirmed the increase in a speech to the Conservative Party conference earlier this month and said the rise will benefit two million low-paid workers.

People aged 23 and over are eligible for the NLW and the actual Living Wage rates will be announced soon but could be up to £11.46 per hour.

The Treasury stated that as a result of successive increases, a full-time worker on the NLW will be more than £9,000 better off than they would have been in 2010.

 National Living Wage will rise to two-thirds of average earnings

 Chancellor commits to Low Pay Commission recommendations, with latest forecasts showing a pay boost next year worth over £1,000 for 2 million low-paid workers

 successive rises mean a full-time worker on the National Living Wage will be over £9,000 better off than they would have been in 2010.

In a significant boost for the UK’s lowest paid, the Chancellor committed to accept the Low Pay Commission’s recommendations - which will be announced in November.

Based on the Low Pay Commission’s latest forecasts, this would see the National Living Wage increase to over £11 an hour from April 2024 and would mean the annual earnings of a full-time worker on the National Living Wage will increase by over £1,000 next year.

The Independent Living Wage Foundation has welcomed the move but says the increase may “fall short” of the real living wage.

Katherine Chapman, Director of the Independent Living Wage Foundation, said: “A rise in the statutory NLW from next April is welcome news for low-paid workers, but may fall short of the real Living Wage next year, the only rate that is independently calculated based on the cost of living.

“There are almost 14,000 employers who are committed to going beyond the minimum wage and always paying the real Living Wage to ensure that everyone who works for them, including contractors like cleaners and security guards, can earn a wage that meets the cost of living.

“And this matters – our research out last week showed that 60% of people earning below the real Living Wage had used a foodbank in the past year and nearly 40% were regularly skipping meals.”

Here at the Hollies Bookkeeping Services in Shropshire, we want to ensure that all our clients are aware of this forthcoming change and talk to us about what we can do to help to help them implement it.

Please get in touch with us via phone 01743 790086 at via email at info@holliesbookkeeping.co.uk

Sources: GOV.UK and Living Wage Foundation.

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