The changes are as follows:

• National Living Wage (NLW) (21 and over): from £10.42 to £11.44 (9.8% increase)
• 18-20 year old rate: from £7.49 to £8.60 (14.8% increase)
• 16-17 year old  and Apprentice rate: from £5.28 to £6.40 (21.2% increase)
• Accommodation offset: £9.99 (9.8% increase)

Notably, the NLW will include those age 21 and over, which has been brought down from those age 23 and over. This is a significant change.

Looking to the future, the LPC are looking into a broader framework for NMW. It wishes to implement a single adult rate for those age 18 and over, however we shall await their publication in their advice to the Government into how this may be implemented and structured.

Please ensure that you check that you are up to date with their NMW requirements. If you get it wrong, not only do you risk claims, you risk being included in a public list of employers that have breached the national minimum wage legislation.

The Government is cracking down on companies who fail to pay the NMW. As of 20th February 2024, the Government has named and shamed 524 businesses who were found to have failed to pay their workers just under £16 million, between 2015 and 2023. The companies named have had to pay back their staff and face penalties of up to 200% of their underpayment. This means any companies who underpay their employees, could end up on the next list.

Further information on this can be found at https://www.gov.uk/government/news/over-500-companies-named-for-not-paying-minimum-wage.

If you require any assistance regarding the matters outlined in this article, or wish us to review your current pay schemes to ensure you are meeting the legal requirements, please contact a member of our team.