The UK National Minimum Wage in 2025 – Full Guide

From 1 April 2025, new increases to the UK’s National Minimum Wage (NMW) and National Living Wage (NLW) come into effect, impacting millions of workers across the country. These adjustments, announced by the government following recommendations from the Low Pay Commission, are part of an ongoing effort to align minimum wage levels with rising living costs and improve living standards.

The new wage rates are:

• National Living Wage (age 21 and over): £12.21 per hour
  
• 18–20 Year Old Rate: £10.00 per hour
  
• 16–17 Year Old Rate: £7.55 per hour
  
• Apprentice Rate: £7.55 per hour
  
• Accommodation Offset: £10.66 per day
  

These changes represent one of the most significant annual increases in recent years. The NLW, in particular, has risen by 6.7%, offering full-time workers an additional £1,400 per year on average. Younger workers and apprentices will also see their earnings grow substantially, with increases of up to 18% in some categories.

The wage rise is intended to ensure that the NLW reaches two-thirds of median earnings, fulfilling the government’s target to provide a fairer income floor across all age groups. It also reflects efforts to close gaps between age categories and improve youth employment pay.

However, business groups have expressed concerns about the financial burden on employers, particularly in sectors such as retail, hospitality, and social care. Many warn that the increase could lead to reduced hiring or job losses if businesses struggle to absorb the additional wage costs.

Despite these challenges, the government maintains that the uplift is necessary to support low-income households and drive inclusive economic growth. The Low Pay Commission continues to monitor economic conditions and will consult widely to inform future wage decisions.

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