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National Living Wage and National Minimum Wage to rise in 2021

National Living Wage and National Minimum Wage to rise in 2021

April Foster

In response to the Low Pay Commission’s recommendations, the government has confirmed that the National Living Wage (NLW) and the National Minimum Wage (NMW) are both set to increase from 1 April 2021 onwards.

The National Minimum Wage is the minimum pay per hour almost all workers are entitled to.  The National Living Wage is higher and from next April will apply to everyone aged 23 and over (previously the NLW only applied to those aged 25 and over).

The new pay rates from 1 April 2021 are as follows:
 
Age Group Previous rate (per hour) New Rate (per hour)
 23+  £8.72  £8.91
 21-22  £8.20  £8.36
 18-20   £6.45  £6.56
 16-17  £4.55  £4.62
 Apprentice rate  £4.15  £4.30
 
Additionally, the accommodation offset rate will also rise. The new rate will be £8.36.