Important changes to be aware of from April 2021
National Living Wage
The Government has announced that from 1 April 2021, the age at which workers qualify for the National Living Wage will reduce to 23 (from its current 25).
The current and new rates are shown below:
|Rate from April 2020||Rate from April 2021||Increase|
|Aged 25 and above||£8.72*||£8.91*||2.2%|
The daily accommodation offset rate will increase by 2% - from £8.20 to £8.36.
*National Living Wage
Real Living Wage: April 2020
This is a recommendation of the Living Wage Foundation and is a purely voluntary scheme open to employers, based on actual living costs and applicable only to those aged over 18. Its advisory rates are set each November and are currently £9.50 UK-wide and £10.85 for London.
Statutory parental, bereavement and SSP payments: April 2021
The weekly rates that will apply from 12 April 2021 to statutory maternity, paternity, shared parental, adoption, and bereavement pay as well as statutory sick pay (SSP) are as follows:
|Weekly rate / limit from April 2021|
|Statutory maternity pay, maternity allowance, paternity pay, shared parental pay, and adoption pay
||£151.97 (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate)
|Statutory parental bereavement pay
|Statutory sick pay (SSP)
To be entitled to these statutory payments, the employee’s average earnings must be equal to or more than the lower earnings limit. This has not yet been confirmed for 2021.