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National Living & Minimum Wages Increase

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Thursday, 1 April, 2021
National Living Wage

Around two million of the UK’s lowest-paid workers have benefitted from the Conservative Government’s increase to the National Living Wage and National Minimum Wage. The National Living Wage has risen by 2.2 per cent, to £8.91, and has been expanded to cover 23 to 24-year olds for the first time. The rate rise of 2.2 per cent is the equivalent of an extra £345 per year for someone working full time.

Significantly, 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. Going forward, the Conservative Government remains committed to the target of the National Living Wage reaching two-thirds of median earnings by 2024, and this increase allows progress to continue to be made towards it.

Other rate increases include:

  • A 2.0 per cent increase for 21-22-year olds, from £8.20 to £8.36 an hour.
  • A 1.7 per cent increase for 18-20-year olds, from £6.45 to £6.56 an hour.
  • A 1.5 per cent increase for under 18-year olds, from £4.55 to £4.62 an hour.
  • A 3.6 per cent increase to the Apprenticeship Wage, from £4.15 to £4.30 an hour.

These pay increases builds on the unprecedented support the Conservative Government has delivered to protect jobs and livelihoods through the pandemic, including protecting 11.2 million jobs through the furlough scheme (worth a total of £53 billion), providing £18.9 billion to support 2.7 million self-employed workers to date, and billions of pounds in tax deferrals and grants for businesses. All of these measures have helped businesses continue operating and helped them to survive the pandemic.

Recently, the £2 billion Kickstart Scheme also launched, creating 120,000 opportunities for young people across the country, which will provide skills and level-up opportunities.

Last month’s Budget also introduced new measures to cut down on the cost of living by freezing fuel duty for the eleventh consecutive year-saving an average car driver £12.84 per tank and a cumulative £1,600 and freezing all alcohol duties, saving drinkers £1.7 billion.

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