The National Living Wage will rise by £1.02-an-hour from April, the Treasury has announced.
The almost 10% pay boost, from £10.42 to £11.44 an hour, is the biggest increase in the National Living Wage, which is currently the minimum hourly pay a person over the age of 23 earns when working, in over a decade.
Eligibility for the National Living Wage will also be extended by reducing the age threshold to 21-year-olds for the first time.
Under the new plans, 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. 18-20 year olds will get a wage boost to £8.60 per hour – a £1.11 hourly pay bump.
Chancellor Jeremy Hunt said: “Next April all full-time workers on the National Living Wage will get a pay rise of over £1,800-a-year. That will end low pay in this country, delivering on our manifesto promise.
“The National Living Wage has helped halve the number of people on low pay since 2010, making sure work always pays.”
The Department for Business and Trade estimate 2.7m workers will directly benefit from the 2024 National Living Wage increase.
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