INCOME BOOST
Exact date low-income workers will get £1,800 pay rise next month – check if you qualify
Workers aged 21 and over will also benefit from the huge boost
MILLIONS of Brits will bag a £1,800 a year pay next month when both the National Minimum and National Living wages rise.
The minimum hourly rate for over 21s will rise from £10.42 to £11.44 this April.
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It hands an almost 10% cash boost to nearly three million workers who receive the national living wage and have seen their packets squeezed by inflation.
The hike is the biggest increase in the minimum wage for a decade and for the first time will apply to over-21s, rather than over-23s.
The minimum hourly wage for an apprentice will also increase by more than a fifth from £5.28 to £6.40 an hour.
The national minimum wage and the national living wage are both rates of pay set by the government.
Read more spring budegt
Spring Budget at a glance
- Fuel duty will be frozen and the 5p cut extended for a year
- Alcohol duty will be frozen until February next year
- National insurance was cut by an additional 2p
- An extension of the Household Support Fund for the fifth time
- Households on Universal Credit will get an extra year to repay emergency loans from the Government
- A new tax on vapes, which will cause prices to rise
- A one-off new tax on fags to ensure they are more expensive than the electronic alternative
- The high income child benefit charge was raised from £50,000 to £60,000
But both are different from the Real Living Wage - a voluntary minimum that some employers commit to paying, which is £12 or £13.15 in London as of October 2023.
The hourly rate for the minimum wage depends on how old you are and whether you're an apprentice.
To qualify for the National Minimum Wage you must be of school-leaving age, which is usually above 16.
To get the National Living Wage workers must be aged 23 and above.
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However, it was confirmed before the 2023 Autumn statement announcement that workers aged 21 and over will also be entitled to the National Living Wage from April.
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How is the minimum wage increasing?
The minimum wage is increasing from April 1, 2024.
The current rates for the National Living wage (for those aged 23 and over) and the National Minimum Wage (for those of school-leaving age) are as follows:
- 23 years and over - £10.42
- 21-22 year olds - £10.18
- 18-20 year-olds - £7.49
- Under 18 - £5.28
- Apprentices - £5.28
From April 1, 2024 workers aged 21 and over will benefit from being able to earn the National Living Wage.
How much is the minimum wage going up by?
The minimum hourly rate for over 21s will rise from £10.42 to £11.44 next April.
This means that nearly three million workers who receive the National Living Wage will get an almost 10% cash boost.
The new rates that will start from April 1, 2024 are as follows:
- 23 years and over - £11.44
- 18 to 20 year-olds - £8.60
- 16 to 17 year olds - £6.40
- Apprentices - £6.40
Which workers do not qualify for the national minimum wage?
Those who are self-employed, voluntary workers, company directors, and family members who live in the home of the employer and do household chores do not qualify for the minimum wage.
Au pairs, members of the armed forces don't qualify either.
People on a government employment programme are also not entitled to the payment.
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