News

02 Dec 2020

Government announces 2021 National Living Wage (NLW) and National Minimum Wage (NMW)

Following the Chancellor’s statement on 25 Nov, the Government has now announced the 2021 National Living Wage (NLW) and National Minimum Wage (NMW), accepting the LPC’s recommendations in full.

The 2021 National Living Wage (NLW) will reach £8.91, an increase of 2.2 per cent. Commissioners remain committed to the Government’s goal of ending low pay. Given uncertainties over the long-term economic outlook, they have not recommended any change to the Government’s target of the NLW reaching two-thirds of median earnings by 2024. The LPC’s report sets out an indicative future path for the NLW; but the effects of furloughing on pay data limit its precision this year. A full report will follow in early December.

The minimum wage rates which will apply from 2021 are:

  Rate from April 2020 Rate from April 2021 Increase
National Living Wage £8.72 £8.91 2.2%
21-24 Year Old Rate £8.20 £8.36 2.0%
18-20 Year Old Rate £6.45 £6.56 1.7%
16-17 Year Old Rate £4.55 £4.62 1.5%
Apprentice Rate £4.15 £4.30 3.6%
Accommodation Offset £8.20 £8.36 2.0%

 

The Low Pay Commission (LPC) will be holding an online launch event for our full report on Wednesday 09 December 15.00 – 16.00. Commissioners and Secretariat will present on our recommendations. The link to sign up for the event is here.

 

 


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