Autumn Statement 2023: National Minimum Wage Increase

22nd November 2023

On 21 November 2023, the Government announced the increase to the National Minimum Wage (NMW) and National Living Wage (NLW) rates that will be effective from 1 April 2024.

The following tables show how the NMW and NLW come together.

The new rates are as follows:

NMW rate from 1 April 2024 Increase in pence Percentage increase
National Living Wage (21 and over) £11.44 £1.02 9.80%
18-20 year old rate £8.60 £1.11 14.80%
16-17 year old rate £6.40 £1.12 21.20%
Apprentice rate £6.40 £1.12 21.20%
Accommodation offset £9.99 £0.89 9.80%

 

The current rates (from 1 April 2023) are:

23 and over £10.42
21 to 22 £10.18
18 to 20 £7.49
Under 18 £5.28
Apprentice £5.28

 

The rate increases are the largest at any one time and since the inception of NMW. The increase follows recommendations put forward by the Low Pay Commission (LPC) and allows the Government to meet its targets set in 2019.

The new rates ensure that all those over the age of 21 are now paid at the NLW; the 23 and over band has been combined with the 21 to 22 band. At the other end of the scale apprentice who reach 21 whilst still in the apprenticeship will also be entitled to NLW.

For further details concerning the changes announced by the Government, please speak with a member of the Employment Taxes team.

Nick Bustin

Employment Tax Director
+44 20 7969 5578
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