Substantial increases to NMW are coming

Chancellor Rachel Reeves has accepted the recommendations of the Low Pay Commission and announced substantial increases in the rates of the National Living and Minimum Wage which will directly impact over three million UK workers. For the first time, these rates take into consideration the cost of living.

From April 2025 the National Living Wage (payable to workers aged 21 and above) will go up by 6.7% from £11.44 to £12.21. This is worth an extra £1,400 per year for full-time workers. 

Rates for the hourly National Minimum Wage rates will increase:

• By 16.3% for 18 to 20 year-olds - from for from 8.60 to £10.00 
• By 18.00% for apprentices - from £6.40 to £7.55

The accommodation offset will increase by 6.7% from £9.99 to £10.66 per day.

The National Minimum Wage increase of £1.40 is the biggest on record. The government aims to align the National Minimum Wage and National Living Wage over time, creating a single adult wage rate. 

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