UK government announces pay rise for millions of people from April 2021

In his Spending Review, the Chancellor confirmed on Thursday, November 26, that the rate rises includes a 2.2 per cent increase in the National Living Wage to £8.91 (€9.97), the equivalent of £345 (€386) extra per year for someone working full-time.

For the first time, more younger people will be eligible for the National Living Wage, as the age threshold will be lowered from 25 to 23.

The rises mean that the annual earnings of a full-time worker on the NLW will have increased by around £4,030 (€4,500) since its introduction in April 2016.

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.”

Chancellor of the Exchequer, Rishi Sunak, 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.”

In full, the increases are:

• National Living Wage (23+) to increase 2.2 per cent, from £8.72 (€9.77) to £8.91 (€9.98)
• National Minimum Wage (21-22) to increase 2 per cent, from £8.20 (€9.18) to £8.36 (€9.36)
• National Minimum Wage (18-20) to increase 1.7 per cent from £6.45 (€7.23) to £6.56 (€7.35)
• National Minimum Wage (under 18) to increase 1.5 per cent from £4.55 (€5.10) to £4.62 (€5.18)
• Apprenticeship Wage to increase 3.6 per cent from £4.15 (€4.65) to £4.30 (€4.82)

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