The NMW which applies to 21 and 22 year-olds has risen from £8.20 to £8.36 and the NLW has risen from £8.72 to £8.91. 23 and 24 year olds are now eligible for the NWL, prior to April 1st 2021, only workers ages 25 and over were eligible.
The rates for NMW and NLW for all employees are as follows:
| Previous Rate (£) | Rate from April
2021(£) |
Increase (%) | |
| National living wage | 8.72 | 8.91 | 2.2 |
| 21-22 Year-old rate | 8.20 | 8.36 | 2.0 |
| 19-20 Year olds | 6.45 | 6.56 | 1.7 |
| 16-17 Year olds | 4.55 | 4.65 | 1.5 |
| Apprentice Rate | 4.15 | 4.30 | 3.6 |
The National Living Wage and National Minimum Wage has increased every year since their introduction – and, in this extraordinary year, the government is committed to providing both workers and businesses with certainly in this difficult time.
The new rates – announced at the Chancellor’s Spending review 2020 – were recommended by the Independent Body the Low Pay Commission, following extensive consultation. The government is committed to the target of the National Living Wage reaching two-third of median earning by 2024, and this increase allow progress to continue to be made towards it.
The figures were recommended with the aim to provide a rise in pay for millions of families across the UK, while ensuring businesses can thrive as the country continues to recover from Covid-19
The LPC has published a short report which outlines how we will respond to our remit and approach our recommendations on the April 2022 rates, in the context of economic uncertainly and recovery from the pandemic. The report sets out a pathway to the target of two-thirds of median earnings. Our best current estimate for the on-course NLW rate in 2022 is £9.42, a 5.7 per cent increase. However, this is subject to more uncertainty than usual and is likely to chance.
