The Government has announced that the National Living Wage will increase by 2.2 per cent in 2021.
From April 2021, the National Living Wage (NLW) will reach £8.91, up from £8.72 in April 2020, and will be extended to 23 and 24 year olds for the first time.
The National Minimum Wage for other age groups will also increase in 2021:
- 21-22 Year Old rate – £8.36
- 18-20 Year Old rate – £6.56
- 16-17 Year Old rate – £4.62
- Apprentice rate – £4.30
- Accommodation Offset – £8.36
The Government has set a new target for the NLW, to reach two-thirds of median earnings by 2024.
The age threshold for the rate will also come down to 23 next year and to 21 by 2024.
