The National Living Wage will increase by 2.2% and will be extended to 23 and 24 year olds for the first time. For workers aged under 23, the government has announced smaller increases in NMW in recognition of the risks to youth employment which the current economic situation poses. From 1 April 2021, the new hourly rates of NLW and NMW are:
• £8.91 for those 23 years old and over
• £8.36 for 21-22 year olds
• £6.56 for 18-20 year olds
• £4.62 for under 18s
• £4.30 apprentice rate for apprentices under 19, and those 19 and over in their first year of apprenticeship.
The extension of the NLW to 23 and 24 year olds may catch out some employers. Employees in this category, if they are on the NMW rate, are currently being paid £8.20 an hour.