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30th March 2021

April 2021 changes to the National Living Wage & other payments

The National Living Wage was introduced in April 2016, and the Government has set a target for the National Living Wage to reach two-thirds of median earnings by 2024 for workers aged over 21, taking economic conditions into account.

On 1 April 2021, the National Living Wage will increase by 2.2 per cent to £8.91 and will apply for workers aged 23 and over for the first time, down from aged 25 and over.

This is the first step towards the National Living Wage applying to workers aged 21 and over by 2024. The Government is also introducing increases between 1.5 per cent and 3.6 per cent to each of the National Minimum Wage rates for younger workers and apprentices.

Here is a summary of key changes from 1st April 2021:

Statutory Maternity, Paternity and Sick Pay Rates from April 2021

The family-friendly rates applicable to Maternity, Paternity, Adoption, Parental Bereavement and Shared Parental Leave will increase from £151.20 to £151.97 per week.

Statutory Sick Pay (SSP) is to increase from £95.85 to £96.35 per week.

The increases to the family-friendly rates will apply from the first Sunday in April (4th April 2021) and the increase to SSP from 6th April 2021.

What do I need to do now?

You need to make sure that all of your team are being paid legally. Specifically check any team members under the age of 25 who may be affected by this change.

Further information is available on the employers’ National Minimum Wage page. You can contact Acas for advice online or by calling 0300 123 1100.

*All information is correct at the time of publishing. Use of this material is subject to your acceptance of our terms and conditions.

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