The UK Government has accepted the recommendations of the LPC and will be raising the national minimum and national living wages from 1 April 2024.
This puts the NLW at £11.44, which is two-thirds of median hourly pay for workers over the age of 21. This is an increase in £1.02 compared to the current NLW, a 9.8% increase.
It has also lowered the age threshold to receive NLW, meaning that all workers over the age of 21 will be eligible to receive it.
The NMW for 16-17 year olds and apprentices will be £6.40 per hour, whilst the rate for 18-20 year olds will be £8.60 per hour.
The accommodation offset has also been increased in line with the NLW increase of 9.8%, to £9.99 in day. The weekly value for 2024 will be £69.93.
The full recommendations of the LPC can be read at: GOV.UK | Minimum wage rates for 2024
Commenting on the increase in the NLW, NFU Deputy President Tom Bradshaw said that the higher-than-expected increase will have a “massive impact” on agriculture businesses, which are already facing increased production costs.
He said: “We fully recognise the challenges with the cost of living and we need to recognise the value of our people working in agriculture. But wages within the agriculture industry have already seen huge growth, increasing by a third over the past two years.
“As the Governor of the Bank of England himself said this week, agriculture had seen significantly more inflationary pressures due to a steep rise in energy costs, more than any other sector.
“That is why we need the wider supply chain to share this additional cost burden or risk facing further increased food price inflation, at a time when people can ill-afford it.
“Following campaigning by the NFU, the amount grower business can claim for worker accommodation has increased by almost 10%, following the same percentage increase as the National Living Wage. This will provide some support to stretched businesses.”