The Low Pay Commission publishes full report on National Minimum Wage rates from April 2021

09 December 2020

The Low Pay Commission (LPC) has published its full report, which provides full analysis, along with the evidence that underpins the recommendations made on the National Minimum Wage (NMW) rates that will be implemented from April 2021.

As a reminder, the rates that will apply are as follows:

National Living Wage


21-22 Year Old Rate


18-20 Year Old Rate


16-17 Year Old Rate


Apprentice Rate


Accommodation Offset


The recommendations made by the LPC were accepted in full by the government, and the rates were announced within the Spending Review, delivered by Rishi Sunak, on 25 November 2020.

Research that the LPC commissioned has also been published, as it was used in informing the recommendations for the rates to be used from April 2021.

There are a number of chapters within the report, and they cover the following:

  • The state of the UK economy
  • Developments in the labour market
  • Who National Living Wage (NLW) and NMW workers are – what their household status is, and the level of exposure they have had to the labour market effects of coronavirus and lockdown
  • The strength of the NLW labour market prior to coronavirus and lockdown – this section explores changes in employment over the period leading to lockdown and how employment and hours responded to lockdown restrictions. It also looks at the characteristics of furloughed workers
  • Younger workers affected by the age rates of the NMW and apprentices
  • How employers have responded to the NMW and NLW and the impacts on the economy
  • The prospects for the economy in the coming year, based on the forecasts and evidence that were available at the time
  • The rationale for the LPC’s recommendations


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