Millions of workers in all parts of the UK will receive a pay increase as minimum pay rates rise, with the age threshold reduced to 23 year olds
Around two million of the UK’s lowest-paid workers will benefit from an increase in National Living Wage and National Minimum Wage.
The National Living Wage has risen to 2.2% to £8.91, and will be given to 23 and 24-year-olds for the first time.
The rate rises include a 2.2% increase in the National Living Wage to £8.91, the equivalent of more than £345 extra per year for someone working full-time.
For the first time since it came into effect in 2016 more younger people will be eligible for the National Living Wage, as the age threshold will be lowered from 25 to 23 years old.
The rise means someone working full time on the National Living Wage from April 2021 will be taking home £5,400 more annually than they were in 2010.
From today, those over the age of 23 are eligible for the National Living Wage. The uplift will particularly benefit workers in sectors such as retail, hospitality and cleaning and maintenance.
Prime minister Boris Johnson said:
‘The National Minimum and Living Wages have increased every year since they were introduced, supporting the lowest paid, and despite the challenges we’ve faced recently, this year will be no different.
‘That’s why we’re providing a well-earned pay rise to two million people, which will be a welcome boost to families right across the UK.
‘To make sure the next generation isn’t left behind, everyone over 23 years old will also now be eligible.’
The increases from 1 April 2021 are:
- National Living Wage (23+) has increased 2.2%, from £8.72 to £8.91
- National Minimum Wage (21-22) has increased 2%, from £8.20 to £8.36
- National Minimum Wage (18-20) has increased 1.7% from £6.45 to £6.56
- National Minimum Wage (under 18) has increased 1.5% from £4.55 to £4.62
- Apprentice Rate has increased 3.6% from £4.15 to £4.30