National Minimum Wage and National Living Wage increased
About 2 million workers in UK will receive a pay increase from April 1, as the National Living Wage and National Minimum Wage uplift comes into effect.
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.
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."
Chancellor Rishi Sunak said:
"We know that the past year has been very difficult for businesses and families across the country. This pay rise will help support employees as we steadily reopen the economy and get more people back to work.
At the same time, our Plan for Jobs is helping support businesses to recover and create more jobs, with measures such as VAT cuts, business rates relief, and cash grants for the most affected sectors."
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