National Minimum Wage: UK's Largest Ever Increase

On 1st April 2024, the Government's new National Minimum Wage rates took effect. We take a look at all the details surrounding National Minimum Wage (NMW), National Living Wage (NLW) and Living Wage (LW) and how it stacks up against the previous increase.

What's changed?
- You no longer need to be 23 to receive National Living Wage. In April's update, this has been lowered to 21 years old.
- Each pay point has been increased by a minimum of 9.8%, over 2.5x today's inflation rate of 3.38%. This sounds good, however this is short of the variable inflation we've seen in the past year - hitting a peak of 10.4% and plunging us in to a cost of living crisis.

What's the difference between NMW and NLW?

The National Minimum Wage: The minimum, pay per hour, that almost all workers* are entitled to by law.
The National Living Wage: Higher than the National Minimum Wage, workers will get this if they’re over the age of 21, by law.
Living Wage: Is set by the Living Wage Foundation at £12 per hour and £13.15 in London. This rate is calculated on living costs and employers can volunteer to pay this.

Pay rates from 1st April 2024:

This is a significant increase compared to that of April 2021, in which the National Living Wage was only available for those aged 23 and over, and the increase generally didn't cover the rate of inflation at the time (2.59%).

*You can find out more at https://www.gov.uk/national-minimum-wage including who this effects