On April 1, 2025, the National Living Wage and National Minimum Wage increased, impacting approximately 3.5 million low-paid workers across the UK. These wage rates are set annually by the government based on recommendations from the Low Pay Commission. Additionally, the Real Living Wage, which is voluntarily paid by some firms, has also risen, affecting nearly 500,000 individuals.
As of April 2024, the National Living Wage applies to workers aged 21 and older, reduced from the previous minimum age of 23. The rate increased from £11.44 to £12.21 per hour, representing a 6.7% rise. This adjustment is estimated to provide an additional £1,400 annually for full-time eligible workers.
The National Minimum Wage, which applies to younger employees ranging from ages 16 to 20, also saw increases. For those aged 18 to 20, the minimum wage rose from £8.60 to £10 per hour (a 16.3% increase), while the rate for 16 to 17-year-olds climbed from £6.40 to £7.55 (an 18% increase).
Apprentices are paid various rates based on age and apprenticeship stage. Those aged 16 to 18 receive the National Minimum Wage, which is currently £7.55. However, apprentices over the age of 19 or beyond their first year are eligible for the National Minimum Wage or National Living Wage according to their age.
Certain workers, including the self-employed, company directors, and volunteers, do not qualify for these wage regulations. Employers are legally obligated to pay their eligible workers the correct rates; failing to do so can result in significant fines from HMRC. In June 2023, over 200 companies faced fines totaling nearly £7 million for non-compliance.
The Real Living Wage, overseen by the Living Wage Foundation, is an unofficial rate aimed at workers 18 years and older and is voluntary. The current rates are £13.85 per hour in London and £12.60 in the rest of the UK. Firms that are part of this program have six months to implement the new increases.
Source: https://www.bbc.com/news/articles/cy7e8mpdxpro?at_medium=RSS&at_campaign=rss