The government has announced the new National Minimum Wage (NMW) rates that will apply from 1 April 2025. These are as follows:

The National Living Wage rate paid to those who are aged 21 and over has increased by 6.7%. This is a relatively modest increase in comparison to the last 2 years but is still expected to equal two-thirds of median earnings and in real terms be the highest minimum wage has been in its history in the UK.

Baronness Philippa Stroud, Chair of the Low Pay Commission (LPC), appeared to acknowledge the strain the increases in recent years have placed on businesses when she said: “The data shows some signs of employers finding it harder to adapt to minimum wage increases.” She also said that while the economy is expected to grow over the next year, “productivity growth remains subdued.”

After coming into power, Labour asked the Low Pay Commission, an independent body that recommends what rates are used each year, to work towards removing the age bands so that all adults receive the same minimum wage. As a result, the increases to the 18-20 Year Old, 16-17 Year Old and Apprentice Rates are significant.

While these increases are good news for workers, employers will need to look at affordability when planning their headcount for next year.

See: https://www.gov.uk/government/news/national-living-wage-to-increase-to-1221-in-april-2025