The UK government has accepted in full the Low Pay Commission’s recommended increases to the national living wage (NLW) and national minimum wage (NMW) rates, to apply from 6 April 2021.
The NLW, which currently applies only to workers age 25 or over, will increase by 2.2% and, importantly will be extended to 23 and 24-year-olds for the first time.
For younger workers, the commission recommended smaller increases in recognition of the risks to youth employment which the current economic situation poses. The apprentice rate will have the largest increase of all, up 3.6%, in furtherance of the commission’s ultimate goal of fully aligning it with the rate for 16 to 17-year-olds by 2022.
The new rates will be:
- Age 23 or over (NLW rate): £8.91 (up 2.2% from £8.72)
- Age 21 to 22: £8.36 (up 2% from £8.20)
- Age 18 to 20: £6.56 (up 1.7% from £6.45)
- Age 16 to 17: £4.62 (up 1.5% from £4.55)
- Apprentice rate: £4.30 (up 3.6% from £4.15)
- Accommodation offset £8.36 per week (up 2% from £8.20)