The Chief Secretary to the Treasury (Laura Trott)
Today I can inform the House that the Government will accept all of the independent Low Pay Commission’s recommendations for the new national living wage and national minimum wage rates, which will come into force in April 2024.
In April the Government published their remit to the Low Pay Commission for 2023, asking them to make recommendations for the national living wage in line with the Government’s ambitious target and manifesto commitment to reach two-thirds of median earnings by 2024 and the age threshold lowered to 21 years, provided that economic conditions allow.
The Low Pay Commission has recommended that:
The national living wage should increase by 9.8%, from £10.42 to £11.44 an hour, with the age threshold lowered from 23 to 21 years old;
The rate for 18 to 20-year-olds should increase by 14.8%, from £7.49 to £8.60 an hour; and
The rate for 16 to 17-year-olds and the apprentice rate should both increase by 21.2%, from £5.28 to £6.40 an hour.
The Low Pay Commission has also recommended that the accommodation offset increases from the current rate of £9.10 to £9.99 from 1 April 2024.
By accepting the Low Pay Commission’s recommendations, the Government will meet their target, ending low hourly pay for eligible workers.
The new national living wage rate of £11.44 will be a record increase and represents an increase of over £1,800 to the annual earnings of a full-time worker on the national living wage. The increases to both national living wage and national minimum wage rates are expected to benefit nearly three million workers.
These increases are due to come into effect from 1 April 2024, subject to parliamentary approval. The Government intend to lay implementing regulations before Parliament in due course.
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