Chancellor of the Exchequer, Rachel Reeves, announced in her Autumn Budget that the National Living Wage from April 1st 2025 will increase to £12.21 per hour, creating pay rises for over 3 million workers.
This rate has been recommended by the Low Pay Comission, which is expected to equal two-thirds of median earnings and have the highest real value in the history of the UK’s minimum wage (Gov.uk).
This increase of 6.7% to the living wage will be worth £1,400 per year for an eligible full time worker. 18-20 years are receiving the largest increase to their rate on record, which will see full time young workers benefit from a pay boost of £2,500 next year.
The new rates also narrows the gap between 18-20 to 21+ years, where there is the view for the adult rate to be eliglble from 18+ years in the future to create a single adult wage rate. The Living Wage has previously reduced from 25 to 23 years from April 2021 and from 23 to 21 years from April 2024
Chancellor Rachel Reeves said:
“This Government promised a genuine living wage for working people. This pay boost for millions of workers is a significant step towards delivering on that promise.”
The new National Minimum Wages rates from April 1st 2025:
| Rate from April 2025 | Increase (£) | Increase (%) | |
|---|---|---|---|
| 21+ Years | £12.21 | £0.77 | 6.7% |
| 18-20 Years | £10.00 | £1.40 | 16.3% |
| 16-17 Years | £7.55 | £1.15 | 18.0% |
| Apprentice Rate | £7.55 | £1.15 | 18.0% |
| Accommodation Offset | £10.66 | £0.67 | 6.7% |
Current National Minimum Wage rates (From 1st April 2024 – March 31st 2025)
| 21 and over | 18 to 20 | Under 18 | Apprentice | ||
|---|---|---|---|---|---|
| £11.44 | £8.60 | £6.40 | £6.40 |
If you are currently seeking your next role and looking for support, please leave your details below and a consultant from your local branch will be in touch within 3 workings days to discuss if we can help:
