Back in November the Low Pay Commission announced the new National Living Wage (NLW) and National Minimum Wage (NMW) rates after the government accepted its recommendations for 1st April 2024.

One new change is that the age threshold for the NLW is being lowered to 21, from the current 23 years of age.  The NLW is increasing by £1.02, from £10.42 to £11.44, a 9.8% increase.  The other rates for the NMW are as follows:

• Those aged 18 – 20 will see a rise of £1.11, from £7.49 to £8.60, a 14.8% increase; and
• Those aged 16 – 17 and apprentices will see a rise of £1.12, from £5.28 to £6.40, a 21.2% increase.

These increases are the largest we have seen, driven by the high interest rates in the last year and the resulting in the strong pay growth across the economy.  The gap between the various rates is also closing, as can be seen by the bigger percentage increases in the younger age bands.