The Government has announced the 2021 National Living Wage (NLW) and National Minimum Wage (NMW), accepting the LPC’s recommendations in full.

The 2021 National Living Wage (NLW) will reach £8.91, an increase of 2.2 per cent. Given uncertainties over the long-term economic outlook, they have not recommended any change to the Government’s target of the NLW reaching two-thirds of median earnings by 2024.  

The minimum wage rates which will apply from 2021 are:

 

Rate from April 2020

Rate from April 2021

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 Old Rate

£4.55

£4.62

1.5%

Apprentice Rate

£4.15

£4.30

3.6%

Accommodation Offset

£8.20

£8.36

2.0%