Spending Review 2020

On Wednesday 25th November 2020, Chancellor, Rishi Sunak, delivered the Spending Review for 2020.

Within the review it was confirmed that following the independent Low Pay Commission (LPC) the National Living Wage (NLW) will increase for individuals aged 23 and over by 2.2% from £8.72 to £8.91 and this will be applied from April 2021.

The Government has also accepted the LPC recommendations for the National Minimum Wage as follows:

  • Increasing the rate for 21 to 22-year-olds by 2.0 per cent from £8.20 to £8.36 per hour
  • Increasing the rate for 18 to 20-year-olds by 1.7 per cent from £6.45 to £6.56 per hour
  • Increasing the rate for 16 to 17-year-olds by 1.5 per cent from £4.55 to £4.62 per hour
  • Increasing the rate for apprentices by 3.6 per cent from £4.15 to £4.30 per hour
  • Increasing the daily accommodation offset rate by 2.0 per cent from £8.20 to £8.36

 

In addition, the Government will increase the 2021-22 Income Tax Personal allowance and Higher Rate Threshold in line with the September CPI figure. The CPI figure will also be used for the National Insurance limits and thresholds along with the Class 2 & 3 National Insurance contributions for 2021-22.

The Government have also pledged £2.9 billion towards the Kickstart Scheme to create hundreds of thousands of new and subsidised jobs for young people.

If you have any further questions relating to the above, please contact us at support@garbutt-elliott.co.uk