National Living Wage Rates 2024 – NFU response

NFU supports the government’s ambition to bring the National Living Wage to 2/3 of median earnings by 2024.

LPC project that the rate for 2024 will be £11.16 but that this may change according to how the economy develops. 

Affordability

Economic conditions are challenging for farmers and consideration of affordability when rates are set needs to be made.

Accommodation

Aligning the amount that can be offset for accommodation to one hour’s national living wage will be useful as it will:

• give certainty to employers as to how much can be recovered for accommodation provided. At present to amount of the accommodation offset as a % of an hour’s wage varies from year to year.
• the offset does not cover the cost of accommodation but setting at one hour’s wage will help and allow revenue to be put in to maintain and improve the housing stock but not impose an excessive burden on workers in our view.

Each year, the LPC (Low Pay Commission) gathers evidence on the effects on employers and workers of increases to the NMW (National Minimum Wage) and the NLW (National Living Wage). It also invites views on business conditions and the economic outlook in order to make its recommendations.

Topics covered in the consultation

The LPC is particularly interested in hearing evidence about:

• The affordability and effects of an increase in April 2024 to an NLW rate within the on-course range of between £10.90 and £11.43 with a central estimate of £11.16.
• The impact of the NLW’s increase to £10.42 on workers, employers, the labour market and economy.
• The impact of lowering the NLW age threshold to 21 years of age and the removal of the 21–22 Year Old Rate.
• The effect of the minimum wage on young people and their employment prospects.
• The effects of this year’s increase in the Apprentice Rate, and its continued alignment with the 16-17 Year Old Rate.
• Awareness, use and impacts of the Accommodation Offset.

How to respond

The consultation is open until 9 June 2023.

Responding directly to the LPC

You were asked to respond directly by emailing your views to [email protected] before 11:45am on 9 June 2023. 

Sharing your views with the NFU

You were able to contribute to the NFU's official response to the consultation by 17 May 2023.

The government has set a target for the NLW (National Living Wage) to reach two-thirds of median earnings by 2024.

To hit this target the LPC project that the NLW rate for 2024 will be between £10.90 and £11.43 with a central estimate of £11.16. In addition, it is likely that the LPC will recommend that the age threshold for the NLW is lowered to 21 years of age from 2024.

The LPC launches its consultation, seeking views to help inform its recommendations on what the National Living Wage should be in 2024.

You can read the consultation in full at: GOV.UK | Low Pay Commission consultation 2023