Good News National Minimum Wage Set to increase for 2025 – Find Out How Much More You’ll Earn

The Government has announced the acceptance of the Low Pay Commission’s (LPC) recommendations on the National Minimum Wage (NMW) and National Living Wage (NLW) rates, which will take effect from 1 April 2025.

These changes, which are expected to benefit thousands of workers across the UK, include notable increases in pay rates, especially for younger workers and apprentices.

New Minimum Wage Rates from April 2025

Here’s a breakdown of the new rates set to apply from April 2025:

• NMW Rate Increase (£) Percentage Increase
• National Living Wage (21 and over) £12.21 £0.77
• 18-20 Year Old Rate £10.00 £1.40
• 16-17 Year Old Rate £7.55 £1.15
• Apprentice Rate £7.55 £1.15
• Accommodation Offset £10.66 £0.67
• This adjustment is expected to make over 60,000 more workers eligible for the National Living Wage by the end of the decade, as per the DWP’s projections.

What Does This Mean for Workers?

The new rates meet the Government’s target to ensure the National Living Wage equals two-thirds of median earnings. This is set to be the highest real value in the history of the UK’s minimum wage.

Baroness Philippa Stroud, Chair of the Low Pay Commission, said:

“These rates secure a real-terms pay increase for the lowest-paid workers. Young workers will see substantial increases in their pay floor, making up some of the ground lost against the adult rate over time.”

One of the biggest changes is the increase in the pay rate for 18-20 year-olds, which narrows the gap between their wages and the adult rate. This is in preparation for the NLW to be extended to 18-year-olds in the future.

Carrying Forward the National Minimum Wage Ambition

The LPC’s recommendations aim to balance the goal of providing fair wages for workers while also addressing the economic pressures faced by employers, especially with the rapid increase in the adult rate over the last two years. The 1.7% hike in benefit rates also supports workers’ living standards, ensuring that low-paid workers get a boost despite challenging economic conditions.

Other Important Updates on Minimum Wage Rates

The 16-17 Year Old Rate has been increased, bringing it back in line with the original value relative to the adult rate.

Apprentice rates will remain at the same level as the 16-17 Year Old Rate.

The Accommodation Offset will also increase to £10.66 per day, which applies to employees who are provided accommodation by their employer.

What’s Next for the National Living Wage?

The Low Pay Commission will continue working on its recommendations for the future of the National Living Wage, including plans to extend the NLW to 18-year-olds in future years. The commission will hold consultations on the pathway to achieving this goal.

For now, workers can expect their wages to rise by significant amounts, especially those in lower wage brackets, with substantial increases in their weekly and monthly pay starting from April 2025.

The Government’s acceptance of the Low Pay Commission’s recommendations is a big step forward for UK workers. With the increased rates of the National Living Wage, 18-20 year-olds, apprentices, and other workers will see their incomes grow, helping to meet rising living costs. This increase is not only aimed at improving workers’ pay but also addressing the challenges faced by employers while ensuring economic stability.

If you qualify for the National Minimum Wage or National Living Wage, this change could significantly boost your income. Make sure to keep track of the updates, and get ready for the pay increase coming in April 2025.

Source

FAQ’s