The Government has accepted the recommendations of the Low Pay Commission (LPC) on the minimum wage rates for 2024. The LPC is an independent body that advises the Government on the minimum wage. The new rates are shown below.
| NMW rate from 1 April 2024 | Increase in pence | Percentage increase |
| National Living Wage (21 and over) | £ 11.44 | £ 1.02 | 9.8% |
| 18-20 Year Old Rate | £ 8.60 | £ 1.11 | 14.8% |
| 16-17 Year Old Rate | £ 6.40 | £ 1.12 | 21.2% |
| Apprentice Rate | £ 6.40 | £ 1.12 | 21.2% |
| Accommodation Offset | £ 9.99 | £ 0.89 | 9.8% |
The LPC has recommended a National Living Wage (NLW) of £11.44 for workers aged 21 and over. This is based on a target of reaching two-thirds of median earnings by 2024, which was set by the Government in 2019. This will be the first time that the NLW applies to 21 and 22 year olds, following the LPC’s previous recommendation in 2019.
The LPC has also recommended large increases to the minimum wage rates for younger workers and apprentices. These are based on the performance of the youth labour market and the need to keep the wage floor for young people in line with the wider labour market.
The LPC has made these recommendations after considering the evidence from employers, workers, and experts. The LPC has also used data and forecasts from the Office for National Statistics, the Bank of England, and HM Treasury.
The LPC recognises that these recommendations will have a significant impact on both employers and workers. Employers in low-paying sectors face rising costs and uncertainty, while workers on the lowest incomes face growing hardship and rising living costs. The LPC believes that its recommendations will balance the interests of both groups and will not harm employment prospects.
The LPC is currently reviewing the broader framework for minimum wages after 2024. The LPC will provide its advice to the Government on this in due course.