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The UK government has accepted the Low Pay Commission’s recommended increases to the national living wage (NLW) and national minimum wage (NMW) rates, to apply from 6 April 2021. The NLW, which currently applies only to workers age 25 or over, will increase by 2.2% and will be extended to 23 and 24-year-olds for the first time. The apprentice rate will have the largest increase of all, up 3.6%, with the ultimate goal of fully aligning it with the rate for 16 to 17-year-olds by 2022.
The new rates will be:
- Age 23 or over (NLW rate): £8.91 (up 2.2% from £8.72).
- Age 21 to 22: £8.36 (up 2% from £8.20).
- Age 18 to 20: £6.56 (up 1.7% from £6.45).
- Age 16 to 17: £4.62 (up 1.5% from £4.55).
- Apprentice rate: £4.30 (up 3.6% from £4.15).
- Accommodation offset £8.36 per week (up 2% from £8.20).