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The UK Government has accepted in full the Low Pay Commission's recommended increases to the national living wage (NLW) and national minimum wage (NMW) rates, to apply from 6 April 2021.

The NLW, which currently applies only to workers age 25 or over, 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 commission recommended smaller increases in recognition of the risks to youth employment which the current economic situation poses.

The apprentice rate will have the largest increase of all, up 3.6%, in furtherance of the commission's ultimate goal of fully aligning it with the rate for 16 to 17-year-olds.

The new rates will be:

  • Age 23 or over (NLW rate):
 

£8.91 (up 2.2% from £8.72)

  • Age 21 to 22:
 

£8.36 (up 2% from £8.20)

  • Age 18 to 20:
 

£6.56 (up 1.7% from £6.45)

  • Age 16 to 17:
 

£4.62 (up 1.5% from £4.55)

  • Apprentice rate:
 

£4.30 (up 3.6% from £4.15)

The Accommodation offset, the maximum allowable deduction from wages for employer-provided accommodation, increases to £8.36 per day (up 2% from £8.20).

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