The government has today (27 November) announced the National Living Wage (NLW) and National Minimum Wage (NMW) rates which will come into force from April 2021.
The NLW, which currently applies only to workers age 25 or over, will increase by 2.2% from £8.72 to £8.91 and will be extended to 23- and 24-year-olds for the first time.
For younger workers, smaller increases have been recommended 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% to £4.30.
The increase in the NLW will mean that lower paid workers’ incomes will rise broadly in line with predicted wage growth, ahead of projected price increases, meaning lower paid workers’ living standards should be protected.
The new rates will be:
| Age | Wage | Difference |
|---|---|---|
| 23+ | £8.91 | up 2.2% from £8.72 |
| 21-22 | £8.36 | up 2% from £8.20 |
| 18-20 | £6.56 | up 1.7% from £6.45 |
| 16-17 | £4.62 | up 1.5% £4.55 |
| Apprentice rate | £4.30 | up 3.6% from £4.15 |
| Accommodation offset | £8.36 | up 2% from £8.20 |