Chancellor of the Exchequer Jeremy Hunt has announced that the national living wage will increase to at least £11 per hour from April 2024.
Hunt made this announcement yesterday at the Conservative Party Conference in Manchester, where he committed to accept the Low Pay Commission’s recommendations.
These recommendations, which will be announced in November, on national living and national minimum wage rates are based on a remit that sets a target for the national living wage to reach two-thirds of median earnings by 2024 for employees aged 21 and over, taking economic conditions into account.
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The increase will mean that the annual earnings of a full-time employee aged 23 and above will increase by more than £1,000 next year.
Hunt said: “Since we introduced [the national living wage], nearly two million people have been lifted from absolute poverty. At the moment it is £10.42 and hour and we are waiting for the Low Pay Commission to confirm its recommendation for next year. But I confirm today, whatever that recommendation, we will increase it next year to at least £11 an hour. A pay rise for more than two million workers.”
Katherine Chapman, director of the Living Wage Foundation, added: “A rise in the statutory national living wage from next April is welcome news for low-paid workers, but may fall short of the real living wage next year. The new real living wage rates will be announced later this month on 24 October, where we expect a significant increase.”
Terry Payne, global managing director of Aspire, said: “This has been a long time coming and could start to make a difference to millions of people struggling to make ends meet and finding themselves falling into more debt every month. Another 58p or so an hour might not sound like a lot, but across a month, it might just mean that people who can’t pay their rent or mortgage or put food on the table for their family are able to do so. It’s certainly a step in the right direction, but more could and should be done by the government.”