a

In his Spending Review on 25 November 2020, the Chancellor announced the National Minimum Wage rate increases for 2021. Additionally, from April 2021, the age threshold for the National Living Wage is lowered from 25 to 23. To reflect this, the 23-24 age category for the National Minimum Wage will be abolished.

The National Minimum Wage rates are set to increase in April 2021 as follows:

·         National Living Wage (23+) to increase from £8.72 to £8.91

·         National Minimum Wage (21-22) to increase from £8.20 to £8.36

·         National Minimum Wage (18-20) to increase from £6.45 to £6.56

·         National Minimum Wage (under 18) to increase from £4.55 to £4.62

·         Apprenticeship Wage to increase from £4.15 to £4.30

The Government remains committed to a target of the National Living Wage reaching two-thirds of median earnings by 2024.

As at 6 January 2021