From 1 April 2025, all UK National Minimum Wage (NMW) rates, including the National Living Wage (NLW), have been increased, delivering a meaningful boost to low-paid workers amid ongoing cost-of-living pressures. These changes follow the largest single-year cash increases in over a decade and reflect the government’s target to push the NLW to two-thirds of median earnings.
This year’s uplift is especially significant as it continues a trend set in April 2024, when the government lowered the age threshold for the National Living Wage from 23 to 21 and raised the NLW from £10.42 to £11.44. That was already a landmark shift, marking one of the boldest moves in wage policy in recent memory. The 2025 changes build on that momentum.
New Minimum Wage Rates from 1 April 2025
| Category | New Hourly Rate | Increase (£) | Increase (%) |
| National Living Wage (21+) | £12.21 | £0.77 | 6.7% |
| 18–20 Year Old Rate | £10.00 | £1.40 | 16.3% |
| 16–17 Year Old Rate | £7.55 | £1.15 | 18.0% |
| Apprentice Rate | £7.55 | £1.15 | 18.0% |
| Accommodation Offset (daily) | £10.66 | £0.67 | 6.7% |
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Why This Increase Matters
This latest wage increase comes at a critical time. With inflation still high, many workers, particularly in retail, hospitality, and care, have struggled to keep pace with rising costs for essentials like food, housing, and energy.
The 2025 NLW rise means a full-time worker aged 21 or over now earns roughly £25,000 annually, representing a tangible step toward wage fairness and economic stability for lower-income households. Moreover, aligning the NLW with two-thirds of median earnings, a long-term goal, demonstrates a strategic shift toward wage-led growth.
It also further closes the wage gap between younger and older workers, giving more value to youth labour and apprenticeships.
While many workers welcome the rise, small businesses and employers in low-margin industries are voicing concerns about affordability. Some warn it could affect hiring or force businesses to reduce hours.
Still, the Low Pay Commission and UK Government continue to stand by the policy, citing the importance of a dignified income for all and the broader benefits of increased consumer spending and reduced wage inequality.
The LPC is expected to continue consultations through 2025 to shape future recommendations for 2026 and beyond.
