The national living wage is set to increase by just over a pound to £11.44 from April 1st, 2024.
This is to be the biggest ever increase to the national living wage, boosting the wages for nearly three million low paid workers next year.
The living wage is the legal minimum hourly pay for 23s and over, but will include 21s and over from 2024.
The Chancellor says earnings will increase by £1,800 a year for full-time workers and is in accordance with the manifesto pledge to end low pay.
In response to the increase Katherine Chapman, Director of the Living Wage Foundation said: “A rise in the statutory national living wage from next April is welcome news for low paid workers but it still falls short of the voluntary real living wage which is £12 per hour in the UK and £13.15 per hour for workers in London.
“Despite tough economic times, it has been heartening to see record numbers of businesses join our movement and we’d encourage other organisations who can, to make the living wage commitment too.”
The real living wage is a voluntary commitment that over 14,000 employers voluntarily choose to pay employees calculated based on the cost of living and is applied to anyone over 18.
Living wage employers include big names like IKEA, Aviva and KPMG as well as small to medium businesses.
