UK lifts minimum wage by 9.8% to £11.44 per hour starting from April 2024

In a major development, the UK has decided to increase the minimum wage, officially known as the National Living Wage, by nearly more than a pound or 9.8% to £11.44 per hour starting April next year, BBC reported — one of the biggest raises as a share of average earnings in any advanced country.

Currently standing at £10.42 an hour for workers over 23, this new rate will also extend to 21 and 22-year-olds for the first time, a decision made by Chancellor Jeremy Hunt.

This policy shift will result in substantial boosts for workers. A full-time employee aged 23 can anticipate a rise of £1,800 annually, while a 21-year-old would see an effective £2,300 increase per year. 

Chancellor Hunt had previously hinted at this wage hike during the Conservative Party conference in October, stating that the minimum wage was on track to surpass £11 in April.

The confirmed raises represent a 9.8% increase for those over 23 compared to last year and a remarkable 12.4% jump for workers aged 22 and 21. Currently set at £10.18 an hour, the minimum wage for individuals aged 21-22 will see a substantial increase.

Additionally, the National Minimum Wage for 18-20-year-olds is set to rise to £8.60 an hour from £7.49, benefiting a total of 2.7 million low-paid workers. Apprentices are not left out, with an hourly pay increase of over 20%, rising from £5.28 to £6.40.

Chancellor Hunt embraced the proposals from the Low Pay Commission in full. 

The commission advises the government on the minimum wage, and Hunt affirmed that the Conservatives' goal to "end low pay" by elevating the living wage to two-thirds of a measure of average earnings has been achieved.

"The National Living Wage has helped halve the number of people on low pay since 2010, making sure work always pays," stated Hunt.

 However, concerns have been raised in certain industries, with last year's similar rise prompting retail and hospitality businesses to voice worries over higher wage bills.