The April rate increases are now just a month away, and come in between the 1st - 6th April 2021. The following is a summary of the changes as they apply to the minimum wage, sick pay, and family friendly payments.
1st April 2021
The national minimum wage and the national living wage rate increases that will apply from the 1st April 2021, will be as follows:-
- For workers aged 23 and over (i.e. the National Living Wage), the rate will increase from £8.72 to £8.91 per hour
- For workers aged 21-22 inclusive, the rate will increase from £8.20 to £8.36 per hour
- For workers aged 18-20 inclusive, the rate will increase from £6.45 to £6.56 per hour
- For workers aged 16-17 inclusive, the rate will increase from £4.55 to £4.62 per hour
- The apprentice rate will increase from £4.15 to £4.30 per hour
4th April 2021
Family-friendly rate increases usually take place on the first Sunday in April, which this year is set to be the 4th April in 2021. The rate changes are:-
- For statutory maternity pay, statutory paternity pay, shared parental pay, adoption pay, and maternity allowance, the rate is set to increase from £151.20 to £151.97 per week
- In relation to statutory parental bereavement pay, there is also set to be an increase from £151.20 to £151.97 per week.
6th April 2021
In terms of rate increases due to take place on the 6th April 2021, the statutory sick pay (SSP) rate is set to increase from £95.85 to £96.35 per week.
Background To Rate Increases
The rate increases in relation to the national minimum wage and the national living wage had been recommended by the Low Pay Commission (LPC), and the Government accepted those recommendations in full.
The Chair of the Low Pay Commission (LPC), Bryan Sanderson, stated: “Recommending…[minimum wage increases] in the midst of an economic crisis coupled with a pandemic is a formidable task. The difficulty in looking forward even to next April is daunting. There are strong arguments concerning both low-paid workers – many performing critically important tasks – and the very real solvency risks to which small businesses are currently exposed...We have opted for…prudent [National Minimum Wage increases and a National Living Wage rise] which consolidates the considerable progress of recent years and provides a base from which we can move towards the Government’s target over the next few years.”
The rate increases for the real living wage and the London living wage took place on the 9th November 2020. The real living wage was increased by 20p per hour from £9.30 per hour to £9.50 per hour. The new rate of £9.50 per hour means that the real living wage is now £0.59 per hour higher than the new rate for the national living wage that will apply from the 1st April 2021, and £0.78 higher than the current rate.
The new rate for the London living wage was announced at the same time as the new rate for the real living wage, with the new rate for the London living wage rising by 10p from £10.75 per hour to £10.85 per hour. Accordingly, the London living wage is now £1.94 higher than the new rate for the national living wage that will apply from the 1st April 2021, and £2.13 higher than the current rate.
Laura Gardiner, the director of the Living Wage Foundation, stated at the time of the real living wage and London living wage rate increases that: “It’s an incredibly challenging time for us all, but today’s new Living Wage rates will give a boost to hundreds of thousands of UK workers....Since the start of the pandemic employers have continued to sign up to a real Living Wage. During Living Wage Week it’s right that we celebrate those employers that have done right by workers and families, providing them with much needed security and stability even when times are hard. These are the employers that will allow us to recover and rebuild from this crisis..”
