Minimum wage up a shocking 9% from April

So, an early warning – Minimum wage rates in the UK will, on first glance, increase on 1st April by around 2%. The headline rate for adults goes from £8.20 to £8.36. However, in a concurrent change, the higher National Living Wage, previously available only to 25-year-olds is now available to 23- and 24-year-olds. This means that the minimum rate for this age group will jump from £8.20 to £8.91 per hour, a whopping rise of nearly 9% This will be particularly difficult for the hospitality sector at a time when they are struggling to recover from the Pandemic.

In Ireland the increase is a more modest 1% from €10.10 to €10.20 per hour.

The new UK rates in full are below:

                                                                                                                       April 2020   April 2021

National Living Wage (23 years old and over) *£8.72£8.912.2%
National Minimum Wage adult rate (21-22 years old)£8.20£8.362.0%
National Minimum Wage (18-20 years old)£6.45£6.561.7%
National Minimum Wage (16-17 years old)£4.55£4.621.5%
National Minimum Wage (apprentice rate)£4.15£4.303.6%
Accommodation Offset (per week)£8.20£8.362.0%

First published 1 December 2020

This table is not yet showing on the gov.uk website but be aware of the new rates when doing your business planning for 2021. If you need any help with planning or budgeting, do call Ray at Baxterworld Ltd on 07803 624 748 or ray@baxterworld.com

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