Countdown to April

National Living Wage Increase: April 2024

Mark Your Calendars

The UK government has announced a significant increase in the National Living Wage and other wage rates, set to take effect on April 1st,2024. This decision follows the acceptance of the Low Pay Commission's recommendations and is in line with the government's commitment to eradicating low pay.

Key Changes

The new National Living increase from April 2024 are as follows:

· National Living Wage (21 years old and over):£11.44 per hour, an increase of 9.8% for over 23s and of 12.4% for over 21s

· 18–20-year-old rate: £8.60 per hour, an increase of £1.11 (14.8%)

Impact on Businesses

This adjustment aligns with the government's pledge to "abolish low pay," defined as earnings below 66% of the median. The rise in wage rates will undoubtedly impact businesses, particularly those in sectors where labour costs represent a significant proportion of turnover, such as hospitality and recruitment. The Chartered Institute of Personnel and Development (CIPD) has highlighted the disproportionate impact of minimum wage rises on various sectors. The hospitality industry reported that 43% of organisations experienced an impact on pay costs due to the minimum wage rise, while 64% of organisations in the professional services sector stated that they were far less affected.

This National Living Wage increase may also force businesses to review their whole pay as a company. Organisations often face challenges with wage differentials when increases in the National Minimum Wage outpace the raises given to their other employees. This can result in a sudden shift, where an organisation that was not previously a minimum wage payer finds itself in that position or where a supervisor is paid only slightly more than the rest of their team. As a result, it becomes crucial for organisations to ensure a fair distribution of their budget to address these wage differences.

It's essential for businesses to prepare for these changes and consider their implications for recruitment and operational costs.

Our Response

As a recruitment company, we are dedicated to assisting both clients and candidates in navigating the upcoming National Living Wage increase and other wage rates. We understand the potential impact of this wage rise on businesses and are committed to providing ongoing guidance and support to ensure a seamless transition. Our focus is on helping businesses adapt to the new wage rates and understand their implications for recruitment and operational costs. By staying proactive and well-informed, we can work together to address the challenges posed by these changes and strive towards a fair and sustainable labour market.

Chris Wright, Managing Director at ACS Staffing Solutions, said, "The increase in the National Living Wage presents both challenges and opportunities for businesses. While it may apply pressure on operational costs, it also highlights the importance of fair pay for workers. At ACS, we are dedicated to supporting businesses in directing this transition, ensuring they remain competitive while upholding fair labour practices’’.

Ready to prepare your business for the upcoming National Living Wage increase? ACS Staffing Solutions is here to provide you with the expert guidance and support you need. Our dedicated team is committed to helping you navigate the new wage rates and understand their impact on recruitment and operational expenses. Let's work together to address the challenges presented by these changes and strive towards a fair and sustainable labour market.

Contact us today to discover how we can effectively support your business.

Chris Wright
February 15, 2024
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