A Significant Boost to the National Living Wage in 2024
Rising to two-thirds of average earnings ...
Posted by Roger Eddowes on 09/10/2023 @ 8:00AM
The UK's commitment to ensuring fair wages for its workers has taken a significant step forward. At the recent Conservative Party Conference, Chancellor Jeremy Hunt made a pivotal announcement regarding the National Living Wage ...
The decision to boost the National Living Wage is a testament to the UK's dedication to its workforce!
The government has confirmed its intention to increase the National Living Wage (NLW) to at least £11 an hour by April 2024. This decision is in line with the recommendations set to be announced by the Low Pay Commission (LPC) in November.
The current target is for the NLW to represent two-thirds of the median hourly pay for workers aged 21 and above by October of the following year. With the LPC's estimates ranging between £10.90 and £11.43, the central figure stands at £11.16!
This wage hike signifies a substantial boost for workers. As per Chancellor Hunt's calculations, a full-time worker earning the NLW can expect their annual earnings to increase by more than £1000 in the coming year.
This move is in line with the government's manifesto pledge to elevate the NLW to two-thirds of the median income, aiming to eradicate low pay in the UK. As of now, the NLW stands at £10.42 an hour. With this increase, over two million workers, currently aged 23 and above, stand to benefit.
"The NLW has seen consistent growth since its inception in July 2015!"
With the upcoming rise, a full-time worker earning the National Living Wage will have an income that's over £9,000 more than what they would have earned in 2010. This consistent growth underscores the government's commitment to ensuring a fair wage for its workers.
While the increase is a boon for workers, it has garnered mixed reactions from the business community. I do admire this commitment from the Chancellor, but wonder what sort of challenge it will be for businesses grappling with escalating costs.
The decision to boost the National Living Wage is a testament to the UK's dedication to its workforce. While it promises better days for millions of workers, it also underscores the need for businesses to adapt and evolve in a changing economic landscape.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about the boost to the National Living Wage and how it may affect your business, it may be a great idea to call me on 01908 774320 and let's see how I can help.
Don't forget to stay updated with our daily social media posts on Facebook.
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
No unauthorised use, duplication, distribution or modification to any original content contained within this blog is permitted without prior written permission of the author. All other trademarks and registered names are acknowledged.