Millions of workers in all parts of the UK received a pay increase from Thursday 1 April 2021, and the age threshold is reduced to 23 years of age.
Around two million of the UK’s lowest-paid workers will benefit from an increase in the National Living Wage and the National Minimum Wage.
The National Living Wage will rise 2.2% to £8.91 and will be given to 23 and 24-year-olds for the first time. This is the equivalent of more than £345 extra per year for someone working full-time.
Since it came into effect in 2016 this rise means someone working full time on the National Living Wage from April 2021 will be taking home £5,400 more annually than they were in 2010.
The National Minimum Wage applies to those from school leaving age to 22. These increases will particularly benefit workers in sectors such as retail, hospitality and cleaning and maintenance.
The increases from 1 April 2021 are:
- National Living Wage (23+) has increased 2.2%, from £8.72 to £8.91.
- National Minimum Wage (21-22) has increased 2%, from £8.20 to £8.36.
- National Minimum Wage (18-20) has increased 1.7% from £6.45 to £6.56.
- National Minimum Wage (under 18) has increased 1.5% from £4.55 to £4.62.
- Apprentice Rate has increased 3.6% from £4.15 to £4.30.
The new rates announced at the Chancellor’s Spending Review 2020, were recommended by the independent body the Low Pay Commission, following extensive consultation.
The government is said to be committed to the target of the National Living Wage reaching two-thirds of median earnings by 2024, and this increase allows progress to continue to be made towards it.
Data from the Office for National Statistics shows the Median earnings for 2020 to be £29,900, which means the National Living Wage would need to increase by 22.9% to meet this target, as it stands today.
