Millions of workers in the UK are all set to get a bumper pay rise as the National Living Wage has declared its intention to increase the per hourly wage. The exact date when the change will come into effect has been revealed and it’s not that far.
The government’s advisory body on minimum wages, the Low Pay Commission (LPC), has declared its intention to increase the statutory amount to £12.10 per hour.
The National Living Wage, currently £11.44 per hour, applies to individuals aged 21 and over.
To keep pace with rising living costs, the minimum wage usually sees an annual increase. This year, the rate rose by 10 percent from £10.42 in April, and in past years, it has typically grown at a rate faster than inflation.
Deputy Prime Minister Angela Rayner promised to “raise the floor on wages,” but Labour wants to go further.
Following their election, Rayner and Business Secretary Jonathan Reynolds directed the LPC to suggest a rise that would cover living expenses and guarantee that the national living wage would not fall below two-thirds of median income.
The Low Pay Commission (LPC) has stated that to align with earnings growth, wages would need to rise by approximately 5.8 percent, a significant increase from their earlier estimate of 3.9 percent in March. This suggests that from April 2025, the National Living Wage could increase from £11.44 to £12.10 per hour.
The LPC also noted that their recommendations now include a “floor” set at two-thirds of median earnings. However, they highlighted that if earnings growth in 2024 exceeds expectations, this projection could rise even further.
Typically, the exact increase in the National Living Wage is announced in the government’s Autumn Statement, which is scheduled for Wednesday, October 30.
A spokesperson for the Department for Business and Trade (DBT) told The Sun: “We are changing the rules to put more money in working people’s pockets.
“But we have also been clear we need to consider the businesses who pay these wages, employment prospects and the impact on the wider economy, which is what we instructed the Low Pay Commission to do.
“We believe a hard day’s work deserves a fair day’s pay and that’s exactly what our Make Work Pay plans will do, working in conjunction with business.”
