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Changes to the National Living Wage

british money bank notes

26th November, 2020

The Chancellor yesterday delivered his comprehensive spending review to Parliament.

Full details of the spending review can be found here.

Noteworthy measures for employers included a substantial change to the National Living Wage (NLW), National Minimum Wage (NMW) and Apprentice Rate which will come into force from 1 April 2021.

National Living Wage

The NLW will extend to all workers aged 23 and 24 and the amount will be increased by 2.2% to £8.91 taking effect from 1 April 2021.

Currently only those aged 25 and over are eligible for the NLW so employers should be ready for implementing this change.

National Minimum Wage

The NMW will be increased as follows with effect from 1 April 2021:

  • 21-22 year old rate (currently the 21 – 24 year old rate) – increase of 2% to £8.36
  • 18 – 20 year old rate – increase of 1.7% to £6.56
  • 16 -17 year old rate – increase of 1.%% to £4.64

Apprentice Rate

The Apprentice rate is seeing the largest increase of 3.6% to £4.30.

If you would like advice on the NLW or NMW or any other Employment Law related matter please contact Debbie Coyne.

Debbie Coyne

Employment Law

Senior Associate
Email: [email protected]
Tel: 01244 405 537

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