Full list of minimum wage increases as millions set to earn more from April
Announced at last year's decisive budget from Chancellor Rachel Reeves, it seems we now know more about the proposed changes on the table for wage workers in 2025.
In a press release today, the Department for Business and Trade, HM Treasury, Low Pay Commission, MP Justin Madders, Deputy Prime Minister Angela Rayner and Chancellor Rachel Reeves laid out the key details for the upcoming rise, that seeks to put a collective £1.8 billion into the wallets of 3 million workers over the course of six years.
Those eligible for the boost are full-time workers who are on the minimum or living wage, commonly those who are already living on the breadline. The boosts are not insignificant either, the average worker seeing another £2000 in their pocket every year.
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In the announcement, they say that "The Government will lay legislation today that confirms a new National Living Wage of £12.21, and a new National Minimum Wage of £10.00 per hour from April." That's an extra 77p in your pocket per hour for those aged over 21, and for those younger a big boost of £1.60.
The Labour government are hoping to help "put an end to age-based wage discrimination, meaning employers can no longer be justified in paying younger workers less for doing the same job as their older colleagues" by bringing their wages more in line with what their colleagues could be getting paid.
On top of this, Labour say they are helping apprentices, with an 18% pay rise from £6.40 to £7.55 an hour.
In a statement on the press release, Chancellor of the Exchequer Rachel Reeves said that "This Government promised a genuine living wage for working people that will support people with the cost of living, creating a workforce that is fit and ready to help us deliver number one mission to growth the economy."
Following the press release, Prime Minister Keir Starmer posted on his X (formerly Twitter) account, saying that "We are putting more money in your pocket" and that "From April, millions of working people will get a pay rise."
The full list of changes are below:
The National Living Wage for those aged 21 and over will rise from £11.44 per hour to £12.21 per hour.
The National Minimum Wage for 18- to 20-year-olds rises from £8.60 to £10.00 per hour.
The apprenticeship rate, and for 16- to 17-year-olds rises from £6.40 per hour to £7.55 per hour.
The move has been praised by many, but as National Insurance contributions go up, as well as water and energy prices, some question how significant the increases are. One user under Starmer's post said that "An increase on minimum wage up to £12.21 isn’t a pay rise when you factor in the rising costs of food, energy bills and bus fare increases. In-work poverty is very much here to stay and you are doing nothing to help people."