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Minimum wage rates from April 2021

An extension of the National Living Wage to those aged 23 and over and the rates of the National Minimum Wage for 2021 have been confirmed in the Chancellor’s Spending Review.

Accepting the 2019 recommendations of the Low Pay Commission, the government has announced that, from 1 April 2021, the age at which workers qualify for the National Living Wage will reduce to 23 (from its current 25) and that the other raises recommended by the LPC have been accepted in full. The rates are as follows (* = National Living Wage):

 

Rate from April 2020

Rate from April 2021

Increase

Aged 25 and above

£8.72*

£8.91*

2.2%

Aged 23-24

£8.20

£8.91*

8.7%

Aged 21-22

£8.20

£8.36

2.0%

Aged 18-20

£6.45

£6.56

1.7%

Aged 16-17

£4.55

£4.62

1.5%

Apprentice rate

£4.15

£4.30

3.6%

 

The daily accommodation offset rate will increase by 2% - from £8.20 to £8.36.

The National Living Wage should not be confused with the Real Living Wage which is a recommendation of the Living Wage Foundation, a purely voluntary scheme open to employers, based on actual living costs and applicable only to those aged over 18. Its advisory rates are set each November and are currently £9.50 UK-wide and £10.85 for London.