Chamber News
Minimum wage to rise to £11.44 per hour
22 November 2023 • Sarah Medcraf
The minimum wage is to increase by more than a pound to £11.44 per hour from April next year.
The minimum wage, known officially as the National Living Wage, is currently £10.42 an hour for workers over 23.
But Chancellor Jeremy Hunt has decided the rate will also apply to 21 and 22-year-olds for the first time.
It means a full-time worker aged 23 on the wage would receive a rise worth £1,800 a year. A 21-year-old would see an effective £2,300 annual rise.
The policy change comes ahead of Mr Hunt's Autumn Statement, which will see the chancellor outline the government's latest tax and spending decisions.
The current minimum wage for those aged 21-22 is £10.18 an hour.
The separate National Minimum Wage for 18-20-year-olds will also increase to £8.60 an hour from £7.49, meaning in total, the above-inflation wage hikes will benefit 2.7 million low-paid workers.
The chancellor accepted the proposals in full from the Low Pay Commission, which advises the government on the minimum wage, saying that the Conservatives' target to "end low pay" by lifting the living wage to two-thirds of a measure of average earnings, had now been met.