The National Living Wage (NLW) initially applied only to individuals aged 25 and over. In April 2021, following the Low Pay Commission's recommendations in 2019, the age threshold was lowered to 23. The threshold will be further reduced to 21 from April 2024.
From 1 April 2024 there will be:
The Low Pay Commission attributes the size of these increases to the robust growth in pay across the economy. However, the increases stop short of the voluntary 'real' Living Wage set by the Living Wage Foundation, which is currently £12 across the UK and £13.15 in London.
Employers who do not pay staff at the appropriate rates not only risk claims from workers, but may also be 'named and shamed' in a government report. It is important for employers to keep abreast of the increases in pay rates, and in particular the application of the NLW to younger workers aged 21 and over from next April.