The government is to increase the national living wage by 6.7% from April 2025.
Chancellor of the Exchequer Rachel Reeves has announced the rate will rise from £11.44 to £12.21 an hour, which will be worth £1,400 a year for an eligible full-time worker. It is part of the government’s manifesto commitment to ensure the minimum wage is a genuine living wage.
The national minimum wage for 18 to 20-year-olds will also rise from £8.60 to £10 an hour, the largest rate increase on record. The extra £1.40 will mean eligible full-time younger employees will see their pay rise by £2,500 next year. This is part of the government’s aim to align the national minimum wage and national living wage to create a single adult wage rate.
In addition, the minimum hourly wage for an apprentice will increase by 18%, with an 18-year-old apprentice seeing their minimum hourly pay rise from £6.40 to £7.55 an hour.
These increases will see a total of 3.5 million workers receiving a pay rise.
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.”
Jonathan Reynolds, business secretary, added: “Good work and fair wages are in the interest of British business as much as British workers. This government is changing people’s lives for the better because we know that investing in the workforce leads to better productivity, better resilience and, ultimately, a stronger economy primed for growth.”
Angela Rayner, deputy prime minister, said: “A proper day’s work deserves a proper day’s pay. Our changes will see a pay boost that will help millions of lower earners to cover the essentials, as well as providing the biggest increase for 18-20-year-olds on record.”
