Budget 2021: Sunak announces National Living Wage increase
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The National Living Wage (NLW) will rise to £8.91, the Chancellor Rishi Sunak said today. He said it means an annual pay rise of £350 for someone working full time on the National Living Wage.
The rate will change from April 1, 2021.
Mr Sunak announced a new National Living Wage rate in last year’s Spending Review, and today, he confirmed it would go ahead.
Last year, he announced the age threshold for receiving the NLW would decrease.
Currently, a person has to be aged 25 or older to get the NLW.
However, this is set to change to those who are aged 23 or older from April 1.
Current National Living Wage rates
Since April 2020, people who are aged 25 or older can get the NLW rate of £8.72 per hour.
People aged 21 to 24, meanwhile, can get £8.20 per hour.
People aged 18 to 20 can get an hourly rate of £6.45 per hour.
The rate is £4.55 per hour for under 18s, and £4.15 for apprentices.
Apprentices can entitled to the apprentice rate if they’re either:
- Under the age of 19
- Aged 19 or over and in the first year of their apprenticeship.
Minimum wage rates from 1 April 2021
The National Living Wage rate form April 2021 will be £8.91 per hour, applying to those 23 and older.
- 21 to 22 – £8.36
- 18 to 20 – £6.56
- Under 18 – £4.62
- Apprentice – £4.30
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