Spending Review 2021/22

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The Chancellor has announced that the Government will accept the recommendations on the Low Pay Commission in full and increase the National Living Wage to £8.91 per hour from April 2021.

This will also apply to those aged 23 and over.

The new rates that will apply from April 2021 are:


2021/22 Rate

Aged 23 and over

£8.91 per hour

Aged 21 to 22

£8.36 per hour

Aged 18 to 20

£6.56 per hour

Aged 16 to 17

£4.62 per hour


£4.30 per hour

Accommodation offset

£8.36 per day

PAYE Changes

The Income Tax personal allowance will increase along with the Higher Rate Threshold in line with the September CPI* figure. 

National Insurance

The government will also use the September CPI* figure as the basis for setting the National Insurance limits and thresholds along with the rates of Class 2 and 3 National Insurance contributions.

*CPI – Consumer Price Index


Spending Review Documents

Full details of the spending review can be found at https://www.gov.uk/government/topical-events/spending-review-2020

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