National Living Wage to rise by almost 7% in April 2025

The government has accepted the Low Pay Commission’s (LPC) recommendations on the rate of the National Living Wage (NLW) to increase it by 6.7% to £12.21 for workers over 21 in April 2025.

Chancellor Rachel Reeves confirmed the increase ahead of today's (30 October) Budget and said the "pay boost for millions of workers is a significant step towards" Labour's pledge to deliver on "a genuine living wage".

The government says that the 6.7% increase is worth £1,400 a year for an eligible full-time worker.

The minimum hourly rate for employees aged 18-20 will increase by 16.3% to £10, with workers aged 16-17 and apprentices also receiving a minimum hourly pay increase.