The Government has now announced the new National Minimum Wage rates, set to take effect from 1 April 2025. Following a comprehensive review by the Low Pay Commission (“LPC”), which considered the ongoing cost of living crisis and inflation trends projected up to March 2026, the Government has fully accepted the LPC’s recommendations.
The National Living Wage will rise from £11.44 to £12.21 per hour (a 77p or 6.7% increase), continuing to apply to workers aged 21 and over. Additionally, there has been a record increase in the rate for workers aged 18-20, from £8.60 to £10.00 per hour (a £1.40 or 16.3% increase).
The new rates are set out below:
| Rate from 1 April 2025 | Current Rate | Increase | |
| National Living Wage for Ages 21+ | £12.21 | £11.44 | £0.77 / 6.7% |
| 18-20 Year Old Rate | £10.00 | £8.60 | £1.40 / 16.3% |
| 16-17 Year Old Rate | £7.55 | £6.40 | £1.15 / 18 % |
| Apprentice Rate | £7.55 | £6.40 | £1.15 / 18 % |
| Accommodation Offset | £10.66 | £9.99 | £0.67 / 6.7% |
Natalie Reeder comments
The increased rates reflect the recommendations of the LPC in full, which for the first time considered cost of living and expected inflation trends. The increase to the 18-20 year old rate is the largest increase on record, and aligns with the LPC’s objective to reduce (and eventually eliminate) the pay gap between those aged 18-20 and those aged 21 and over. Employers should make sure they are aware of the new rates and take steps to implement them from 1 April 2025.
If you have any queries or need assistance with implementing salary amendments, please contact a member of the team here.
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