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UK Chancellor announces nearly 10 percent rise in national living wage

By Nithya Bose in Employment News, posted November 22, 2023

Britain has raised the minimum wage to £11.44 per hour, a rough 10 percent rise, impacting nearly 3 million low-paid workers.

The minimum wage, known officially as the National Living Wage, is currently at £10.42 per hour for workers over 23.

Chancellor Jeremy Hunt said full-time workers would see an annual salary increase of £1,800.

The Low Pay Commission (LPC) said the move met the 2019 Conservative pledge to eradicate poverty pay in the UK.

The substantial cash boost marks the largest-ever increase in the national legal minimum wage.

During a cost-of-living crisis, where inflation has surged to 11.1 percent, this aims to address low-paid workers' economic challenges.

The national living wage (NLW) eligibility will also change, with the age threshold reduced from 23 to 21.

A 21-year-old worker is projected to receive a 12.4 percent increase, equivalent to almost £2,300 annually for a full-time position.

In addition, the national minimum wage for those aged between 18 to 20 years will increase to £8.60 per hour, a £1.11 hourly rise.

Apprentices will also benefit from a 20 percent hourly pay increase, from £5.28 to £6.40.

The Chancellor's decision aligns with the government's target of raising the NLW to two-thirds of median earnings by 2024.

The Department for Business and Trade estimates that approximately 2.7 million workers will benefit from this substantial wage increase.

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Bryan Sanderson, the chair of the Low Pay Commission, said: “The national living wage has delivered an improved standard of living to thousands of people who care for our children and elderly, work in farms and shops and at many other essential jobs.

“These efforts over the lifetime of the NLW mean over £9,000 per annum more to a full-time worker without any increase in unemployment.

“This hasn’t been easy for employers, with the economy facing a range of unprecedented challenges in recent years.

“The high degree of political and economic uncertainty has made assessing and forecasting the performance of the economy, and therefore our task, very difficult.

“It is a tribute to my fellow commissioners that we have continued to achieve consensus.”

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