Minimum wage rises confirmed for 2025, benefiting millions of workers

The Government has announced a series of minimum wage increases that will take effect from next April, delivering higher pay for millions of workers across the UK.

Chancellor Rachel Reeves said she had accepted recommendations from the independent Low Pay Commission to ensure people on low incomes are “properly rewarded” for their work.

Under the changes, the National Living Wage for workers aged 21 and over will rise by 4.1% to £12.71 an hour. Ministers said this will boost the annual earnings of a full-time minimum wage worker by around £900, with approximately 2.4 million people set to benefit.

The National Minimum Wage for younger workers will rise at a faster rate.
For 18 to 20-year-olds, pay will increase by 8.5% to £10.85 an hour, equivalent to around £1,500 extra a year for someone working full time. The Government said this move reflects its commitment to phasing out age-based pay bands over time.

For 16 to 17-year-olds and apprentices, the minimum rate will increase by 6% to £8 an hour.

Campaigners noted that many LGBTI workers are employed in sectors such as retail, hospitality and care — areas with some of the highest proportions of minimum wage roles — meaning the increases are likely to be felt strongly within the community.

Reeves said the rises form part of a wider effort to ease the cost-of-living pressures facing households. “Too many people are still struggling to make ends meet, and that has to change,” she said.

Union leaders welcomed the announcement. TUC general secretary Paul Nowak said the above-inflation increases would “make a real difference to the lowest paid”, while Low Pay Commission chair Philippa Stroud said the new rates were “fair and realistic” following extensive analysis of labour market conditions.

However, employer groups expressed concerns about affordability, particularly in hospitality. UKHospitality chair Kate Nicholls warned that many businesses were already facing heavy financial pressures and that higher wage costs would be “yet another challenge to balance”.

The new rates will come into force in April 2025.