The UK government has recently announced a substantial increase in the National Living Wage, marking a significant step in supporting lower-paid workers. This change not only increases the wage rates but also expands its eligibility, making it a historic move for young workers across the country.

Extended Eligibility for Younger Workers

For the first time, the eligibility for the National Living Wage has been extended to include 21-year-olds. Previously, this was only available to those aged 23 and over. This expansion is a crucial development, offering greater financial support to younger workers.

New Minimum Wage Rates from April 2024

The new wage rates, effective from 1 April 2024, are as follows:

• National Living Wage (Age 21 and over): £11.44 per hour, marking a 9.8% increase.
• 18–20-Year-Old Rate: £8.60 per hour, a significant 14.8% rise.
• 16–17-Year-Old Rate: £6.40 per hour, up by 21.2%.
• Apprentice Rate: £6.40 per hour, also increasing by 21.2%.

This increase in the National Living Wage and the reduction in the age threshold represent a notable boost for young workers and apprentices. As always, we at MMG Chartered Accountants are here to help businesses adapt to these changes and ensure compliance with the new wage standards.