Minimum Wage Increases from April 2021

The government has announced that from 1st April 2020 there is an increase in minimum wage rates.

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-years old, Commissions 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 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%

*Rate also applies to those aged 23- and 24-years old

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.’

Laura Bright, of Harvey, Telford & Bates, reflects on the increase of the national minimum wage:

“In spite of the difficult economic situation that the coronavirus pandemic has posed, the increase of the minimum wage in the UK will be hugely welcomed by workers, particularly low-paid workers where this increase falls broadly in line with predicted wage growth. This will also affect

If you are an employee entitled to the increased minimum wage and would like assistance, please get in touch. As an employer that will be also be affected, we are on hand to help. Please get in touch our team to help get the guidance you need in time for when this change takes effect.”

For more information, help and advice, please call us on 01743 462604, or email hello@htbaccountants.co.uk.

To find out more about the increase in National Living Wage (NLW) and National Minimum Wage (NMW) please visit the Gov.uk website here

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