National Living Wage extended to 23, 24-year-olds for first time

April 7, 2021

The National Living Wage (NLW) has been extended to 23 and 24-year-olds for the first time from this month, it has been confirmed.

The report comes as the legal minimum wage rose on 01 April in line with inflation.

Under the planned changes, the NLW – which will now apply to any worker over the age of 23 – has risen by 2.2 per cent, from £8.72 to £8.91.

It means that a full-time worker already over the age of 25 will receive a pay rise of around £345 per year, while those earning the NLW for the first time will receive a pay rise of almost nine per cent.

Commenting on the changes, Bryan Sanderson, Chair of the Low Pay Commission, said: “This week’s increase in the NLW is our first step towards the Government’s target of two-thirds of median earnings. It is a real-terms increase, meaning that an hour’s work can buy more than it could last year, at the start of the pandemic. The level of the new rate however also reflects the need to protect workers from job losses.

“Importantly, the NLW will now apply to workers aged 23 and over. This is an important change which is strongly endorsed by the Commission. Young people should be fairly rewarded for their work. We will seek to understand how young people’s pay and employment are affected by this in our consideration of a further reduction in the NLW age qualification to 21.”

The National Minimum Wage (NMW), meanwhile, has risen by 1.5 to two per cent, depending on the age of the worker.

The Apprentice Rate has also risen by 3.6 per cent, from £4.15 to £4.30, while the Accommodation Offset has risen by two per cent, from £8.20 to £8.36.

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