Starting in April 2024, over three million UK workers will see a substantial pay increase, with the National Living Wage rising by 6.7%. The change, confirmed by Chancellor Rachel Reeves, is aimed at supporting lower-income earners amid ongoing cost-of-living pressures.
This boost will benefit both adult workers and younger employees, in line with the government’s commitment to creating a fair, sustainable wage for all.
Major Pay Boost for UK Workers
With this increase, the National Living Wage for those aged 23 and over will rise from £11.44 to £12.21 an hour. For a full-time worker, this translates to an annual gain of roughly £1,400.
The rise supports the government’s plan to make the minimum wage a true living wage, ensuring that workers across the UK can afford essentials. This increase impacts a wide range of industries, particularly benefitting those in retail, hospitality, and other low-wage sectors.
In announcing the move, Chancellor Rachel Reeves commented,
“This government promised a genuine living wage for working people. This pay boost for millions of workers is a significant step towards delivering on that promise.”
National Minimum Wage Increase for Young Workers
The National Minimum Wage for younger workers, particularly those aged 18-20, will also see a record-breaking increase of £1.40 per hour, taking it from £8.60 to £10.00. This increase is expected to add around £2,500 annually for full-time younger workers.
The government views this as the first step toward ultimately creating a single adult wage rate for all workers, a change that would simplify the wage structure and potentially increase fairness across age groups.
Deputy Prime Minister Angela Rayner noted,
“Our changes will see a pay boost that will help millions of lower earners cover the essentials while providing the biggest increase for 18–20-year-olds on record.”
Wage Changes Overview
Wage Category |
Current Rate |
New Rate (April 2024) |
Annual Increase (Full-Time) |
|---|---|---|---|
| National Living Wage (23+) | £11.44/hr | £12.21/hr | ~£1,400 |
| National Minimum Wage (18-20) | £8.60/hr | £10.00/hr | ~£2,500 |
| Apprentice Minimum Wage | £6.40/hr | £7.55/hr | ~£2,000 |
Apprentice Wage Rises
In a further commitment to fair wages, apprentice workers, especially younger apprentices in skilled industries like construction, will see their minimum wage rise from £6.40 to £7.55 an hour.
This 18% increase aims to support the many apprentices who play a critical role in the UK’s skilled workforce, allowing them a fair wage as they learn on the job.
Government’s Broader Economic Mission
The wage increases align seamlessly with the government’s ongoing efforts to support working individuals without increasing their tax burdens. Consequently, these boosts complement the Employment Rights Bill, which has already yielded significant benefits for low-paid workers, providing annual gains of up to £600.
Furthermore, this development reinforces the government’s commitment to fostering a pro-growth, pro-worker economy.
Business Secretary Jonathan Reynolds said,
“Good work and fair wages are in the interest of British business as much as British workers.”
The move is part of a broader strategy to enhance productivity by fostering a more resilient workforce. In addition to financial benefits, the plan aims to strengthen the economy by enabling UK workers to thrive, not merely survive.
In Summary
- Over 3 million UK workers to benefit from a 6.7% National Living Wage rise.
- The minimum wage for young workers aged 18-20 increases by a record-breaking £1.40.
- Apprentice workers see an 18% pay boost, benefitting apprentices in construction and similar industries.
With this latest round of increases, the UK government takes a substantial step toward a more inclusive economy where fair pay and economic growth go hand-in-hand. This change not only boosts earnings but also lays a stronger foundation for working people across the nation.
Sources: THX News, HM Treasury, The Rt Hon Angela Rayner MP, The Rt Hon Rachel Reeves MP and The Rt Hon Jonathan Reynolds MP.
