Legal minimum wage to increase from April 2021, Government confirms

The National Living Wage (NLW) and National Minimum Wage (NMW) will increase again in April 2021, it has been confirmed.

The announcement comes after the Government accepted in full the recommendations set out by the Low Pay Commission at the end of last month.

The changes will see the NLW increase by 2.2 per cent from £8.72 to £8.91 and extended to 23 and 24-year-olds for the first time.

Under existing regulations, the NLW only applies to workers over the age of 25.

Commenting on the report, Bryan Sanderson, Chair of the Low Pay Commission, said the changes strike a balance between protecting businesses and the livelihoods of low paid workers.

“Recommending minimum wage rates in the midst of an economic crisis coupled with a pandemic is a formidable task. The difficulty in looking forward even to next April is daunting,” he said.

“There are strong arguments concerning both low-paid workers – many performing critically important tasks – and the very real solvency risks to which small businesses are currently exposed. In these unprecedented conditions, stability and competence are prime requirements.”

The new minimum wages for all age groups from April 2021 are listed below:

  • National Living Wage – £8.91
  • 21-22 Year Old Rate – £8.36
  • 18-20 Year Old Rate – £6.56
  • 16-17 Year Old Rate – £4.62
  • Apprentice Rate – £4.30
  • Accommodation Offset – £8.36

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