National Living Wage 2021

The Government has announced the changes to the National Living Wage and National Minimum Wage rates for 2021. If you have employees, it is vital to take note of these and ensure that the increases are accounted for within your payroll budget.

If you use a payroll provider, they will implement these changes on your behalf. If you manage your payroll yourself, then you need to ensure that the changes are made on 1^st April 2021.

The National Living Wage will increase by 2.2 per cent from £8.72 to £8.91 and will be extended to 23- and 24-year olds for the first time.

For workers aged under 23, the Government recommends smaller increases in recognition of the risks to youth employment that the current economic situation poses.

It has been challenging to decide on the rates of increase to wages this year.  The Government had to balance supporting low paid workers as well as take into consideration that many businesses are struggling financially due to the Coronavirus pandemic.

The table below gives the rates of pay suggested from 1^st April 2021.

We wanted to clarify what the accommodation offset means. This is a figure set by the government as a limit to the amount that can be considered as a value of the provision of accommodation by an employer for an employee, that counts towards the national minimum wage.

If you would like any advice or support regarding payroll or financial forecasting to help you implement these increases, please do give us a call on 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it..