National Living Wage increases to £12.21
Source: gov.uk (2025-03-28)

Press release accompanying the Low Pay Commission's 2025 Uprating Report

On Tuesday 1 April, the National Living Wage will increase to £12.21. This will be accompanied by increases in other minimum wage rates for 18-20 year olds (£10.00), 16-17 year olds and apprentices (both £7.55). These changes implement recommendations made by the Low Pay Commission last autumn.

The Low Pay Commission today publishes a short report looking at the context around and the impact of the incoming rates. This looks at the real-terms benefits to workers from the increases, the number of workers paid the rates and their interactions with changes to National Insurance which come into effect from 1 April.

Read the LPC’s 2025 Uprating Report (https://www.gov.uk/government/publications/the-national-minimum-wage-in-2025)

Baroness Philippa Stroud, Chair of the LPC, said:

“These rates secure a real-terms pay increase for the lowest-paid workers. Young workers will also see substantial increases in their pay floor, making up some of the ground lost against the adult rate over time.

“We recognise these increases come at a time when employers are facing increasing pressure and it is vital we monitor and assess how businesses are responding. As we build our evidence base for future recommendations to the Government, we will be launching a call for evidence in the coming weeks and holding in-person meetings up and down the country. I encourage all interested parties to get in touch with us.“

The minimum wage rates from 1 April 2025 are as follows:

The LPC is continuing to gather evidence towards future recommendations to the Government, including via a programme of regional visits (https://minimumwage.blog.gov.uk/2025/01/17/low-pay-commission-regional-visits-2025/). We will launch our written consultation in the near future.

Notes for editors

The incoming minimum wage rates bring into effect recommendations made by the LPC to the Government last October. The Government announced its acceptance of those recommendations in the Autumn Budget.

The evidence underpinning the LPC’s recommendations is set out in its annual report (https://www.gov.uk/government/publications/low-pay-commission-report-2024) and a shorter summary of findings (https://www.gov.uk/government/publications/minimum-wage-rates-for-2025)

The National Living Wage (NLW) is currently the statutory minimum wage for workers aged 21 and over. This age threshold came down from 25 to 23 in April 2021 and from 23 to 21 in April 2024.

Different minimum wage rates continue to apply to 18-20 year olds, 16-17 year olds and apprentices aged under 19 or in the first year of an apprenticeship. The Government has stated its ambition to reduce the NLW age threshold from 21 to 18; this follows the LPC’s own stated ambition and advice, as set out in the publication The National Minimum Wage Beyond 2024. The LPC will consult next year on the pathway to achieving this goal.

Rates for workers aged under 21, and apprentices, are currently lower than the NLW to reflect lower average earnings and higher unemployment rates. International evidence also suggests that younger workers are more exposed to employment risks arising from the pay floor than older workers. Unlike the NLW (where the possibility of some consequences for employment have been accepted by the Government), the LPC’s remit requires us to set the rates for younger workers and apprentices as high as possible without causing damage to jobs and hours.

The National Living Wage is different from the UK Living Wage and the London Living Wage calculated by the Living Wage Foundation. Differences include that: the UK Living Wage and the London Living Wage are voluntary pay benchmarks that employers can sign up to if they wish, not legally binding requirements; the hourly rate of the UK Living Wage and London Living Wage is based on an attempt to measure need, whereas the National Living Wage is based on a target relationship between its level and average pay; the UK Living Wage and London Living Wage apply to workers aged 18 and over, the National Living Wage to workers aged 21 and over. The Low Pay Commission has no role in the UK Living Wage or the London Living Wage.

The Accommodation Offset is an allowable deduction from wages for accommodation, applicable for each day of the week. In April 2025 it will increase to £10.66 per day.

For an NLW worker working 37.5 hours per week, the increases announced today will increase their annual gross pay by £1,505.54 and their monthly gross pay by £125.46.

The Low Pay Commission is an independent body made up of employers, trade unions and experts whose role is to advise the Government on the minimum wage. The rate recommendations introduced today were agreed unanimously by the Commission.

The current Low Pay Commissioners are: Baroness Philippa Stroud (Chair), Nigel Cotgrove, Matthew Fell, Andrew Goodacre, Louise Fisher, Professor Patricia Rice, Simon Sapper, Professor Jonathan Wadsworth and Janet Williamson.

Baroness Philippa Stroud can be contacted via the Low Pay Commission’s press office xx-xxxx-xxxx).