The Chancellor, Rishi Sunak, announced that, with effect from 1 April 2021, the national living wage will increase to £8.91 and will be paid from age 23 (currently from age 25). This is in accordance with recommendations from the Low Pay Commission, which the Chancellor has accepted in full.
Full details of all the minimum wage increases are set out here, taken from the Low Pay Commission’s recommendations:
Rate from April 2021
Aged 25 and above: £8.91
23 to 24-year-olds: £8.91
21 to 22-year-olds: £8.36
18 to 20-year-olds: £6.56
16 to 17-year-olds: £4.62
Apprentice rate: £4.30
Accommodation offset: £8.36
Other announcements in the Government Spending Review include a review of the apprenticeship levy, which will be “broadened so temporary workers can access high-quality, shorter training courses” and a £3bn Job Restart programme to provide those who have been out of work for more than 12 months with job-seeking support. He also announced a public sector pay freeze, except the NHS, with pay rises for NHS workers.
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