National living wage to rise above £11 an hour

The UK’s national living wage is set to increase to at least £11 an hour from next April.

Workers aged 23 and over qualify for the national living wage, which currently stands at £10.42. Different rates apply under the national minimum wage for those who are aged 22 or younger.

The pay rates are decided each year by the UK government, based on the advice of the independent Low Pay Commission.

Although the Commission has not yet confirmed its recommendations for next year, it has estimated that a rate of between £10.90 and £11.43 will be needed to meet the government’s target for the national living wage to reach two-thirds of median hourly pay by October 2024.

In his speech at the Conservative Party conference on Monday, Chancellor Jeremy Hunt is expected to announce that, whatever the Low Pay Commission recommends, the rate will be increased to at least £11 an hour.

“This means a full-time worker will receive an increase of over £1,000 to their annual earnings, putting more money in the pockets of the lowest paid,” said Prime Minister Rishi Sunak.