Minimum wage to rise to £11.44 per hour

Chancellor Jeremy Hunt announced last month that the National Living Wage (NLW) would be going up to over £11 per hour next year. This will fulfil the government remit of ensuring the minimum wage reaches 66% of median earnings; its definition of ending low pay.

A statement from the Treasury said that: "The chancellor will deliver a pay rise of more than £1,800 a year for a full-time worker, as he confirms that the NLW will increase by over a pound an hour from April. The almost 10% pay boost, from £10.42 to £11.44 an hour, is the biggest cash increase in the national living wage in more than a decade and fulfils the government’s manifesto pledge to end low pay."

Eligibility for the NLW will also be extended by reducing the age threshold to 21-year olds for the first time. A 21-year old will get a 12.4% increase, from £10.18 this year to £11.44 next year, worth almost £2,300 a year for a full-time worker. National minimum wage rates for younger workers will also increase.