National Living Wage to rise to £11.44 in April 2024

UKHospitality has urged the government to reduce business taxes after it was confirmed the National Living Wage is set to rise by almost 10% next year.

The higher minimum hourly rate is currently available to full-time workers aged 23 and over but from next year it will be extended to 21-year-olds and 22-year-olds for the first time.

It will increase from £10.42 to £11.44 from 1 April 2024.

The Treasury said it was the largest ever increase in the minimum wage in cash terms and the first time it had risen by more than £1.

Chancellor Jeremy Hunt said the increase would give full-time workers aged 23 a pay rise of “over £1,800 a year”.

It means 21-year-olds will see a 12.4% jump in their hourly pay from £10.18 to £11.44.

National Minimum Wage for younger workers will also increase, with 18-20-year-olds due to receive a boost to £8.60 an hour – a £1.11 rise in hourly pay.

The Department for Business and Trade estimated the rise will benefit 2.7m workers.

Kate Nicholls, chief executive of UKHospitality, tweeted: “National living wage confirmed to rise by 10% from April - up from £10.42 to £11.44 for over 23s.

“A reminder that although govt announces it, it is businesses who deliver it and why it is so vital other action is taken to reduce tax and costs, particularly rates.”

The announcement comes ahead of the Autumn Statement on 22 November.

The National Living Wage rate was introduced in 2016.

*Image: fizkes / Shutterstock *