12 December 2020
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.
Additional Guidance and Resources
- Bira fights for indie retailers in meeting with business minister
- Bira urges shoppers to get back on to the high street
- Bira CEO on ITN London news
- Get ready to reopen your retail business on December 2
- Bira’s 5-step guide to Covid-secure reopening
- List your business for free on national newspaper website
Got a question? Call our membership team on 0800 028 0245