Minimum wage set to increase from 1st April 2021


Employers have less-than two months left to prepare for an increase in the National Living Wage (also known as the minimum wage). For the first time in history, the National Living Wage will apply to people aged 23 and 24, rather than starting at 25. Smaller increases have also been announced to the minimum wage for those below 23, in recognition of the unique risks the coronavirus pandemic poses to younger workers.

New Minimum Wage Rates:

 From April 2020From April 2021% Increase
National Living Wage£8.72£8.912.2
Age 21 – 24£8.20£8.362.0
Age 18 – 20£6.45£6.561.7
Age 16 – 17£4.55£4.621.5
Apprentice Rates£4.15£4.303.6


Bryan Sanderson, Chair of the Low Pay Commission, said: “Recommending minimum wage rates in the midst of an economic crisis coupled with a pandemic is a formidable task. The difficulty in looking forward even to next April is daunting. There are strong arguments concerning both low-paid workers – many performing critically important tasks – and the very real solvency risks to which small businesses are currently exposed. In these unprecedented conditions, stability and competence are prime requirements.”

Although there is, of course, a strong humanitarian case for increasing minimum wage during the pandemic, higher rates will put pressure on smaller businesses struggling to stay afloat. If you are concerned about the rising costs of labour, speak to JW Hinks’ business advisory service. We can help you to make your business more efficient and streamlined, saving money wherever possible. Call us on 0121 456 0190 to make an appointment or learn more.

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