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.

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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.

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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.

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