National Minimum Wage and National Living Wage rates increase every year from 1 April.
This time, the age brackets are changing. From 1 April 2024, the National Living Wage will be extended to include those aged 21 and over (previously only for ages 23 and over).
The National Living Wage, previously applying to 23 year olds and above, will increase to £11.44 and now apply to 21-22 year olds also. For this group, it represents an increase of 12.4%.
The national minimum wage typically affects low-income workers the most, particularly those in industries where wages tend to be lower, such as retail, hospitality, and food service. These workers often rely on the minimum wage as their primary source of income, and an increase in the minimum wage can directly impact their earnings and overall standard of living. Additionally, young workers and minorities are disproportionately represented in low-wage jobs, so they are also significantly affected by changes in the national minimum wage.
Employers in industries that heavily rely on low-wage labour will be most affected by the increase in the national minimum wage. Small businesses, especially those with tight profit margins and limited resources, will feel a significant impact when the minimum wage rises.
