How much are the national minimum wage and national living wage going up?

Three and a half million people in the UK saw their wages rise on 1st April 2025. The national living wage for over 21s rose from £11.44 to £12.21 (6.7% increase), while the national minimum wage for 18- to 20-year-olds rose by 16%.¹

The real living wage, which is voluntarily paid by some employers to reflect the cost of living in the UK, has also gone up. 

The pay rates are set by the government every year, following the advice of the independent Low Pay Commission group. 

The Labour government said the increase means an extra £1,400 for eligible workers. The national living wage now applies to everyone aged 21 and older - before 2024, you had to be at least 23 to get it. 

What about the national living wage?

People under the age of 21 get the national minimum wage, which rose from £8.60 to £10 for 18-, 19-, and 20-year-olds on April 1st. The current government said this would translate into an extra £2,500 a year for these workers.¹

Those aged 16 and 17 saw their wages go from £6.40 to £7.55 (an 18% increase). The separate apprenticeship rate also increased by 18%.¹

Is it against the law not to pay the national living wage and national minimum wage? 

Yes, it is against the law for employers not to pay their employees the national living wage or national minimum wage that they are entitled to. This is still true whether they are paid by the hour, day, month, or year.¹

Anyone paying their staff less than the national living wage (if over 21) or national minimum wage (if over 16) can be fined by the HMRC. Over 200 businesses were fined nearly £7m in 2023 for this reason and were told to reimburse 63,000 workers for years of illegally low pay. These companies included WH Smith, Argos, and M&S.¹

If you are concerned that you or someone you know is not being paid what they are owed, you can complain via the HMRC or contact ACAS for advice. 

Is everyone entitled to the national minimum wage or national living wage? 

Self-employed people, volunteers, those in the armed forces, company directors, and prisoners are among those not entitled to the national minimum or national living wage.  

What is the real living wage? 

The real living wage is a rate based on the estimated cost of living that some employers choose to offer. It is not a legal requirement, but at least 15,000 UK companies pay more than 475,000 the real living wage every year.¹

The London living wage - which is higher than the rest of the country to reflect the cost of living in the capital - rose by 5.3% to £13.85 an hour. The real living wage for the rest of the UK rose to £12.60, an increase of 5%.¹

Sources 

1.   https://www.bbc.com/news/uk-politics-48445674 

All the information in this article is correct as of the date of publishing. The opinions expressed in this publication are those of the authors Euxton Mortgage Market. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information. 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. 

April 2025