National Living Wage and National Minimum Wage has increased

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.

And 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.

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 2 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”.

Business Secretary Kwasi Kwarteng said: “In this toughest of years, we’re protecting workers by putting more money in the pockets of the UK’s lowest paid. To support our next generation of workers, we’ve also lowered the age threshold for the Living Wage to 23 - ensuring even more people have the security of a decent wage. This increase will help millions of families in every corner of the country, while supporting businesses as we prepare to safely reopen our economy and build back better from the pandemic. I’d urge all workers to check their pay packet to ensure they’re getting what they are entitled to, and remind employers of their duty to pay the correct wage”.

In full, the increases from April 1 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

The National Living Wage and National Minimum Wage have increased every year since their introduction – and, in this extraordinary year, there is no exception. The government is committed to providing both workers and businesses with certainty in this difficult time.

An unprecedented £352 billion support package has helped to safeguard jobs, businesses and public services in every region and nation of the UK. 

The Department for Business, Energy and Industrial Strategy (BEIS) is working with partners to run a campaign to encourage eligible workers to visit the Check Your Pay site where they can check their pay and find out what they can do if they believe they are underpaid.