It has been confirmed that the increase in National Minimum Wage and National Living Wage rates are due to come into effect on 1 April 2021, subject to approval by Parliament.
From 1 April 2021, the National Living Wage will increase by 19p to £8.91, representing an 2.2% increase. The National Living Wage currently applies to those aged 25+ but from next April for the first time, this will be extended to 23 & 24-year-olds. The threshold will reduce further by 2024 to include those aged 21.
The hourly rate of the National Minimum Wage for 21 & 22-year-olds will increase by 16p to £8.36. The rates for 18 to 20-year-olds will increase by 11p to £6.56 and the rate for workers over school leaving age but under 18 will increase by 7p to £4.62. The National Minimum Wage rate applicable for apprentices increases by 15p to £4.30.