Millions of workers to get pay rise as Chancellor announces minimum wage increase

29 October 2024, 18:25 | Updated: 29 October 2024, 19:35

The minimum wage will rise to £12.21 an hour
The minimum wage will rise to £12.21 an hour. Picture: Alamy

By Emma Soteriou

Millions of workers will get a pay rise from April after the Chancellor announced an increase to the National Living Wage.

Listen to this article

Loading audio...

The National Living Wage will increase from £11.44 to £12.21 an hour from April 2025 - giving more than three million workers a pay boost.

The 6.7 per cent increase is worth £1,400 a year for an eligible full-time worker.

It comes in an effort from the government to make sure the minimum wage is a genuine living wage.

Follow LBC for all the latest news and analysis and in-depth covering of the first Labour Budget. Listen live on Global Player

The National Minimum Wage for 18 to 20-year-olds will also rise from £8.60 to £10.00 an hour, marking the largest increase in the rate on record.

Ms Reeves said: "This government promised a genuine living wage for working people.

"This pay boost for millions of workers is a significant step towards delivering on that promise."

The Chancellor will deliver her first Budget on Wednesday, as the government tries to bridge what it has called the £22 billion "black hole" in the public finances.

£240m in Budget for local services to help people back into work, Starmer says

Deputy PM Angela Rayner said: "A proper day’s work deserves a proper day’s pay.

"Our changes will see a pay boost that will help millions of lower earners to cover the essentials as well as providing the biggest increase for 18–20-year-olds on record."

Read more: Everything we know about the Budget so far and what it will mean for you

Read more: ‘Stop pleading poverty’: Minister attacks private schools ahead of Labour’s Budget VAT raid

It comes after the Low Pay Commission, which advises the government on the national living wage, said in September it expected the level to rise to £12.10, but stronger earnings growth has fuelled a larger rise.

The minimum hourly wage for an apprentice will also be boosted next year, with an 18-year-old apprentice in an industry like construction seeing their minimum hourly pay increase by 18.0 per cent, a pay bump from £6.40 to £7.55 an hour.

The national living wage was increased by Jeremy Hunt last November to £11.44 an hour, which benefited nearly three million workers.

The separate Real Living Wage, which takes into account “actual living costs”, rose last week to £12.60 for the next year, rising to £13.85 for London-based workers.

However, the Real Living Wage is voluntary, with only around half a million people currently receiving the wage.

More Latest News

See more More Latest News

Edward James Watson Massey, from Co Down in Northern Ireland, is said to have "tragically passed" on May 22.

‘He will be cherished in our hearts forever’ - Brit boy, 4, dies after he’s found unresponsive in Tenerife pool

The ex-Manchester United defender, 46, has worked for the broadcaster since 2015, when it was known as BT Sport

Rio Ferdinand to step down from TNT Sports after 10 years: “Time for the next chapter”

Antonio Conte celebrates as Napoli beat Cagliari to win the Serie A title

Where next for Antonio Conte after Napoli departure?

A comedian has had a gig cancelled after he made a ‘horrific’ joke about the Liverpool FC parade crash.

‘Disgraceful’ comedian has gig cancelled after ‘horrific’ joke about Liverpool parade crash which injured dozens

It is believed NHS trusts had information stolen in the latest cyberattack.

NHS trusts' data 'stolen' in cyberattack which 'could leak sensitive patient records'

New York City, United States. 18th Sep, 2023. File photo dated May 01, 2023 of Hugh Jackman and Deborra-Lee Furness attend the 2023 Costume Institute Benefit celebrating Karl Lagerfeld: A Line of Beauty at Metropolitan Museum of Art

Hugh Jackman’s ex Deborra-Lee Furness details 'traumatic journey of betrayal' as she files for divorce

Paul Danan’s death at his Bristol home after taking a cocktail of drugs including cocaine and heroin was misadventure, a coroner has concluded.

Tragic Hollyoaks star Paul Danan 'found dead on sofa with TV still on,' inquest hears

Royal Island in the Bahamas, Caribbean selling for $45,000,000.

This could be you... buying a private island as Euromillions jackpot soars to £185 million

A shopper in a supermarket

Grocery price inflation surges to 4.1%

James Williamson mugshot

Alabama man ‘cooked his Chihuahua puppy to death in oven because it wouldn’t stop barking’

Last year, the Giant's Causeway received about 684,000 visits

Giant's Causeway visitors urged not to leave 'damaging' mementos in historic rock formation

Metropolitan Police Commissioner Sir Mark Rowley arrives to make a statement outside New Scotland Yard, central London, after the High Court ruled that the Metropolitan Police cannot dismiss officers by removing their vetting clearance.

Sentencing changes to cost 'hundreds of millions’ in extra policing, Met chief tells LBC

Low section of player crouching with rugby ball on field

New Zealand teen dies in viral 'rugby collision' challenge

Friends are concerned for Hannah's mental health

'Extremely vulnerable' Brit backpacker who vanished in Peru found sleeping on streets after being assaulted by locals

The RSPCA has criticised the streaming service for broadcasting the scene in The Abyss

Disney accused of abusing 'animal-cruelty loophole’ by RSPCA over rat-drowning scene

Exclusive
xx

Devastated parents claim mould-ridden flat contributed to baby's death, as government slammed for Awaab’s Law delays