Millions of Workers to Receive a Pay Rise

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Millions of Workers to Receive a Pay Rise

Changes to the National Minimum Wage and National Living Wage mean that millions of workers in the UK will receive a pay increase.


Changes set to come into effect in April 2021 will see 2 million of the UK’s lowest-paid workers will see an increase in wages.

In his Spending Review, Chancellor Rishi Sunak has confirmed that a 2.2% increase will be made to the National Living Wage, equating to £8.91 per hour or £345 extra per year for someone in full-time employment.

Also, for the first time, the age threshold will be lowered from 25 to 23, making more young people eligible.

It comes after recommendations by the Low Pay Commission, an independent body which advises the government on the National Minimum Wage and the National Living Wage.

In a statement on the gov.uk website, the Chancellor said:

“I know people are struggling, and that they are worried about the months ahead. This above-inflation pay rise will help to protect the lowest paid and put more money in the pockets of hard-working families.”

The Government’s goal is to have the National Living Wage reach two-thirds of median earnings by 2024.

With these increases, the annual earnings of a full-time worker on the National Living Wage will have increased by just over £4,000 since its introduction in April 2016.

Here’s a list of the full changes:

  • National Living Wage (23+) to increase by 2.2%, from £8.72 to £8.91
  • National Minimum Wage (21-22) to increase 2%, from £8.20 to £8.36
  • National Minimum Wage (18-20) to increase by 1.7% from £6.45 to £6.56
  • National Minimum Wage (under 18) to increase by 1.5% from £4.55 to £4.62
  • Apprenticeship Wage to increase by 3.6% from £4.15 to £4.30

Also commenting on the scheme, Business Secretary Alok Sharma said:

“While this has been an extraordinarily difficult year for millions of people, this government remains absolutely committed to putting more money in the pockets of the UK’s lowest-paid workers.

“This measured rise strikes the right balance between supporting hard-working families through this tough time, while protecting firms as they recover from the impacts of COVID-19.”

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