Increased minimum wage rates have been announced to take effect from 1 April 2021.
The government has announced that the National Living Wage (NLW) 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 workers aged under 23, Commissioners recommended smaller increases in recognition of the risks to youth employment, which the current economic situation poses.
NLW and National Minimum Wage (NMW) rates will also increase as follows:
|Rate from April||Rate From April||Increase|
|National Living Wage||£8.72||£8.91||2.2%|
|21-22 Year Old Rate||£8.20*||£8.36||2.0%|
|18-20 Year Old Rate||£6.45||£6.56||1.7%|
|16-17 Year Olds Rate||£4.55||£4.62||1.5%|
Bryan Sanderson, Chair of the Low Pay Commission, said:
‘Recommending minimum wage rates in the midst of an economic crisis coupled with a pandemic is a formidable task. The difficulty in looking forward even to next April is daunting. There are strong arguments concerning both low-paid workers – many performing critically important tasks – and the very real solvency risks to which small businesses are currently exposed. In these unprecedented conditions, stability and competence are prime requirements.
‘Our value as a social partnership is to use the imperfect economic evidence to produce a recommendation which is professionally researched and dispassionate. Most importantly, after much debate it has the support of the business, trade union and academic representatives who make up the Commission. We have opted for a prudent increase which consolidates the considerable progress of recent years and provides a base from which we can move towards the Government’s target over the next few years.’