Last reviewed 25 November 2020

The Government has, in its response to the Low Pay Commission’s recommendations, confirmed the new increased rates of National Living Wage (NLW) and National Minimum Wage (NMW). The 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. These new rates will be effective from 1 April 2021.

From April 2021, minimum pay rates will increase as below.

  • NLW (workers aged 23+) — from £8.72 to £8.91 per hour.

  • NMW rates:

    • workers aged 21–22 — from £8.20 to £8.36 per hour

    • workers aged 18–20 — from £6.45 to £6.56 per hour

    • workers aged 16–17 — from £4.55 to £4.62 per hour

    • apprentice rate — from £4.15 to £4.30 per hour.

The accommodation offset rate will rise to £8.36.