MARTIN Lewis has revealed that millions of workers will bag a £1,800 pay rise next year due to an increase in the National Living Wage.
The MoneySavingExpert (MSE) founder shared the news on the latest episode of the Martin Lewis Money Show on ITV.
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He said: “From April 2024, the minimum wage will increase from £11.44 an hour from the current £10.42. That’s for people aged 23.
“Interestingly, they’re now making it 21 and over so they’ll get an even bigger rise. Everyone aged 21 and over will get £11.44 from April.
It is the first time that the new figure will apply to 21 and 22-year-olds, the Treasury announced yesterday.
The Resolution Foundation think tank said that at least 1.7 million workers will benefit directly from the increase.
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The national minimum wage for 18 to 20-year-olds will also increase by £1.11 to £8.60 per hour, the Government has said.
Apprentices will have their minimum hourly rates boosted, with an 18-year-old in an industry like construction seeing their minimum hourly pay rise by more than 20%, going from £5.28 to £6.40 an hour.
It will be the largest cash increase seen by the minimum wage and the first time it has gone up by more than £1, according to the independent Low Pay Commission (LPC)
Chancellor Jeremy Hunt said: “Next April all full-time workers on the National Living Wage will get a pay rise of over £1800 a year.
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“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 announcement came ahead of the Chancellor’s autumn statement.
It’s the government main opportunity to make tax and spending announcements outside of the Budget.
Mr Hunt is aiming to cut taxes and boost growth.
Last night the Treasury vowed to “turbo-charge economic growth in the UK, while cutting taxes and continuing to bring down inflation.”
With the triple lock untouched, the state pension is also set to increase by 8.5 per cent, keeping in step with the usual earnings measurement.
And benefit claimants are expected to receive bumps in line with September’s inflation figure of 6.7 per cent.
The Chancellor had considered choosing October’s lower 4.6 per cent inflation figure as it would have saved the government around £3 billion.
Meanwhile, you can follow live coverage of the Autumn Statement as we explain what all the key money changes mean for you.
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