From April 1, millions across the UK will see their pay increase as new minimum wage rates come into effect. The Government expects this move to offer measurable financial relief to lower earners while stimulating broader economic activity.
The changes were first announced by the Chancellor during the autumn budget and have since been welcomed by unions and business groups. The rise follows sustained pressure from labour organisations and forms part of the Government’s broader aim to implement what it calls a “genuine living wage”.
Statutory Rates Set to Rise Across All Age Groups
As of 1 April 2025, the national living wage for workers aged 21 and over will increase by 6.7%, bringing hourly pay to £12.21, up from the previous rate of £11.44. This adjustment amounts to a projected annual gain of £1,400 for full-time employees working 35 hours a week, according to the UK Government.
Meanwhile, younger workers will also see significant increases. The national minimum wage for those aged 18 to 20 will rise by 16.3% to £10 per hour, while those aged 16 and 17 will earn £7.55, marking an 18% increase. Apprentices will receive a new minimum rate of £6.40 per hour.
The move will directly impact over three million workers, according to official estimates. The Government has stated that a full-time worker on the new national living wage could see their pay increase by around £26 per week, or £117 per month.
Baroness Philippa Stroud, chair of the Low Pay Commission, said the adjustments would help ensure a real-terms pay rise for the UK’s lowest earners. “Young workers will also see substantial increases in their pay floor, making up some of the ground lost against the adult rate over time,” she noted.
Calls for a Shift Toward Real Living Wage Standards
While the increase has been broadly welcomed, unions and campaigners argue that the new statutory rates still fall short of the voluntary real living wage, which currently stands at £12.60 per hour outside London and £13.85 in the capital. These voluntary benchmarks are calculated by the Living Wage Foundation, based on real living costs.
More than 15,000 UK businesses have signed up to pay these higher rates voluntarily. The Usdaw union confirmed that by October 2025, its members in Asda Express, Foodservice, and Leon will receive the real living wage.
According to Paul Nowak, General Secretary of the Trades Union Congress (TUC), “This increase will make a real difference to the lowest paid in this country at a time when one in six are skipping meals to get by.”
Despite positive reception, concerns remain regarding how employers—especially small businesses—will absorb rising wage costs. The Low Pay Commission plans to collect evidence throughout the year on how businesses adapt to the changes, ahead of further recommendations to the Government.
