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National Living Wage Rises to £11.44 from April 2024 — and the Age Limit Falls to 21

Oliver Ramsey
Personal Finance Writer
 · 5 min read

National Living Wage Rises to £11.44 from April 2024 — and the Age Limit Falls to 21

From 1 April 2024, the National Living Wage (NLW) — the minimum wage rate for adults — increased from £10.42 to £11.44 per hour, a rise of £1.02 or 9.8%. For a full-time worker on a standard 37.5-hour week, that translates to an annual gross pay of approximately £22,308, up from £20,319.

Equally significant was a structural change: the qualifying age for the NLW fell from 23 to 21. Previously, workers aged 21 and 22 received a lower Adult Rate (£10.18/hour in 2023-24). From April 2024 they moved onto the full NLW alongside workers aged 23 and over. The Low Pay Commission estimates this change affected around 200,000 workers.

The full 2024 minimum wage rates

The April 2024 rates across all age groups were:

  • National Living Wage (21 and over): £11.44/hour
  • 18–20 rate: £8.60/hour (up from £7.49)
  • 16–17 rate: £6.40/hour (up from £5.28)
  • Apprentice rate: £6.40/hour (up from £5.28)

The increases for younger workers — 14.8% for the 18–20 group — were among the largest in the minimum wage's 25-year history, reflecting the government's stated aim of narrowing the gap between youth and adult rates over time.

What does £11.44 an hour look like after tax?

At £11.44/hour for 37.5 hours per week, annual gross earnings reach £22,308. After income tax and National Insurance at 2024-25 rates, take-home pay works out at approximately £18,762 per year, or £1,564 per month. That compares to roughly £17,124/year net on the 2023-24 NLW of £10.42, a net gain of around £1,638 per year.

For 21 and 22-year-olds previously on the lower adult rate, the jump is larger still — they were entitled to £10.18/hour before April 2024, meaning the move to £11.44 represents a 12.4% headline increase in their minimum rate. See exactly how £11.44 an hour looks after tax.

Why the age threshold change matters

The decision to lower the NLW age to 21 continues a gradual process of aligning younger and older workers' minimum wages. The NLW was originally introduced in 2016 for workers aged 25 and over; the age was lowered to 23 in 2021. The Low Pay Commission has recommended further alignment, with the longer-term goal of a single adult rate from age 18. Employers in sectors with high proportions of young workers — retail, hospitality, care — will have seen their wage bills rise disproportionately as a result.

Conclusion

The April 2024 NLW increase delivered a substantial boost to the lowest-paid workers in the UK — both in the headline rate and in the extension of the higher rate to 21 and 22-year-olds. If you are on or near minimum wage, use our hourly pay calculator to see your exact take-home pay for 2024-25.

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