Millions of the UK’s lowest-paid workers are set to receive a significant wage boost as the government has confirmed new National Minimum Wage and National Living Wage rates for 2025. As reported by Glasgow Live, these changes will come into effect on April 1, 2025, following a 6.7% rise announced in the October 2024 Budget and endorsed by the Low Pay Commission.
The increases mark a major step in Labour’s pledge to establish a genuine living wage, though critics note the new rate still falls short of the £12.60 per hour benchmark set by the Living Wage Foundation.
How Much Is the Pay Rise – And Who Benefits?
From April, workers aged 21 and over will see their hourly wage rise from £11.44 to £12.21, a change that equates to roughly £1,400 more per year for full-time employees. For younger workers aged 18 to 20, the minimum wage will increase by £1.40, taking it to £10 an hour.
This uplift is expected to directly benefit around 3 million people, with officials estimating that up to 4 million more could see indirect improvements due to wage pressure across industries.
Employment Rights Minister Justin Madders described the rise as a major win for workers, saying:
“Economic growth only matters if working people feel the benefits. This will be a huge pay bump for millions, putting more money in their pockets and boosting the high street.”
Chancellor Rachel Reeves echoed this message, stating:
“We promised a genuine living wage, and we are delivering. This pay rise will help hardworking Brits cope with the cost of living.”
Apprentices and Younger Workers See Boost Too
The upcoming wage increase also includes a significant boost for apprentices and younger workers. The apprenticeship wage and the rate for 16- and 17-year-olds will increase from £6.40 to £7.55 per hour, a jump of 18%.
This change could have a meaningful impact on young people entering the workforce. For instance, an 18-year-old apprentice in construction will see a notable rise in take-home pay.
What Are Businesses Saying?
While the wage increases are celebrated by workers and unions, some business leaders—particularly in the retail, hospitality, and pub sectors—warn the changes may lead to hiring freezes or reduced investment. Many are concerned about the combined burden of the National Insurance hike and the wage increases, with some branding it a “jobs tax” that could lead to higher prices for consumers.
