Government announce that the National Living Wage will increase by 2.2% in April 2021

  • In the Chancellor’s Spending Review on 25 November it was announced that there will be an increase of 2.2% to the National Living Wage, taking it’s highest rate from £8.71 to £8.91 per hour.
  • The plans extend the living wage to 23 and 24-year-olds for the first time. Previously, it only applied to workers aged 25 and over.
  • The change will come into effect from 1 April 2021 and is set to benefit around two million of the UK’s lowest paid workers.
  • Government has also confirmed increases in the other National Minimum Wage (NMW) rates. The new rates to be applied from April 2021 are:
From 1 April 2021
Workers aged 23 and over (NLW) £8.91
Workers aged 21 to 22 £8.36
Workers aged 18 to 20 £6.56
Workers aged 16 to 17 £4.62
Apprentices under 19, or over 19 and in the first year of the apprenticeship £4.30

Aspire Comment:

Whilst the increase in NMW and NLW rates will be good news for workers, it will present further cost implications for employers who will need to factor in the increased cost of labour supply either by lowering profit, necessitating further cost saving initiative, or increasing their charges.

If you are concerned about your compliance with the NLW/NMW, please contact Aspire on 0121 445 6178.

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