National Living Wage and National Minimum Wage: Workers will receive a pay increase from today

Millions of workers in all parts of the UK will receive a pay increase from today (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.

The National Living Wage age threshold will also be lowered from 25 to 23 years old.

The UK Government says 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 National Minimum Wage applies to those from school leaving age to 22.

The uplift will particularly benefit workers in sectors such as retail, hospitality and cleaning and maintenance.

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

UK Government 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.”