New Minimum Wage Rates 2021
December 9, 2020
Despite the challenges businesses have faced in 2020, and early indications that the minimum wage would be frozen for 2021, the government has announced an increase to minimum wage rates from April 2021.
The National Living Wage will increase by 2.2%. It will be extended to those aged 23 and 24 for the first time, effectively increasing their pay by almost 9%.
| Age | Rate from 1 April 2020 | Rate from April 2021 | % increase |
| National Living Wage (23+) | £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% |
Voluntary Living Wage
There are also new rates for the Voluntary Living Wage which will increase as below:
London – £10.85 per hour
Rest of the UK – £9.50 per hour
