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Minimum wage goes up to £8.91
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National living and minimum wage increases in 2021

​In the Government’s 2020 spending review, presented by Rishi Sunak on the 25th November, they confirmed that the National Living Wage (NLW) will be increasing in 2021.

Here is a table outlining the increases that are planned to be rolled out from 6th April 2021.

Current Rate

Rate from April 2021

Percentage Increase

NLW

£8.72

£8.91

2.2

21-22 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

More than just an increase

Historically, the NLW has only applied to people aged 25 and over, but from 6thApril 2021, the required age is going to fall to 23 and over. Due to this, a new rate has been set for 21-22-year olds maintaining a three-tiered age system in recognition of the current risks to youth employment.

Taxes

In addition to rises in NLW and National Minimum Wage, the government will be increasing the 2021-22 income tax personal allowance and higher-rate threshold in line with September 2020’s consumer prices index figure. This figure will also be used to set all national insurance limits and thresholds for 2021-22.

If you have any questions as to how these rises will affect your existing or new rates with Select, please get in touch.

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