Legislation confirms new National Living Wage and National Minimum Wage rates

National Minimum Wage increases, to take effect from April 2025, have been confirmed in press release of 4 February 2025.

Statutory rates and national minimum wage (NMW) and national living wage (NLW) are reviewed annually, and usually increased.

Due to an instruction from Prime Minister Keir Starmer to the Low Pay Commission soon after coming into power last summer, the rates in place from 1 April 2025 were devised by taking into account the cost of living and inflation. Previously, these factors have not played a part in the setting of increased rates but are a step towards the goal of a ‘genuine living wage’. 

The new rates are also the first step to fulfil the government’s plans to align the NMW for 18- to 20-year-olds and NLW and create a new single adult rate. This will, however, take a number of years to achieve.

The new rates will be as follows, and will apply from 1 April 2025:

• The National Living Wage for those aged 21 and over will rise from £11.44 per hour to £12.21 per hour.  
• The National Minimum Wage for 18- to 20-year-olds rises from £8.60 to £10.00 per hour.  
• The apprenticeship rate, and for those over compulsory school age to 17 rises from £6.40 per hour to £7.55 per hour.

Chancellor of the Exchequer Rachel Reeves referred to those early promises in the press release “This Government promised a genuine living wage for working people that will support people with the cost of living, creating a workforce that is fit and ready to help us deliver number one mission to growth the economy. This pay boost for millions of workers is a significant step towards delivering on that promise.

Low Pay Commission Chair Baroness Stroud said “The increases we recommended are a big step towards making work pay and achieving a genuine living wage. These rates secure a real-terms pay increase for the lowest-paid, and substantial increases for young workers make up some of the ground lost against the adult rate over time. It’s important we continue to assess the effects of these changes on employers and workers; to that end, the Low Pay Commission will be consulting with both groups in the coming months.”

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