The UK government raised the minimum wage of millions of workers around the country in APRIL 2025. The increase comes at a time when many households are feeling the pinch of rising living costs, and is an important step for low-income workers. The change is likely to affect you regardless of whether you are full-time, part-time or an apprentice.
This article breaks down the boost, whom it affects, how much more workers will earn and what employers and employees need to do. It also responds to some of the most frequently asked questions about the new wage rates.
UK Minimum Wage Rise 2025
The UK government reviews the national minimum and living wage each year in line with advice from the Low Pay Commission. It was 2025 when the rise was put in place to lift with inflation, so workers can afford ever more expensive essentials like food, energy, rent and transport.
This year’s increase to wages is the first step in a longer-term plan to bring the national living wage to at least two-thirds of average earnings. The government also cut the age at which you qualify for the highest rate of pay which itself brings wider swathes of young people into the top bracket. The shift is considered to be a step toward delivering fairer pay and helping to cut in-work poverty.
UK Minimum Wage Increase Overview
| Department | Department of Business an Trade |
| Article on | UK Minimum Wage Rise 2025 |
| Country | UK |
| Eligibility | UK workers or employees |
| Payment Increase | From £11.44 to £12.21 |
| Payment Increase date | 1 April 2025 |
| Category | Government Aid |
| Official Website | https://www.gov.uk/ |
Who Stands to Gain From the Increase in Wages
The great winners are workers 21 or older, now covered by the National Living Wage. Until now, the highest rate had only applied to workers aged 23 and over. More young people will now receive the higher hourly pay rate under the change.
There will also be a substantial increase in the amount that workers between the ages of 18 and 20 are paid. There is no age limit for the new rates, so even those aged 16 to 17 are covered and apprentices are also better supported than before. This means businesses should also review their staff wages to ensure all workers are paid at least the legal minimums. The move is intended to benefit employees in all sectors, but it will particularly help retail, hospitality, and social care employees, where lower wages are more common.
April 2025 New Minimum Wage Rates
| £12.21 per hour | National Living Wage for employees 21 and over |
| £10.00 per hour | Minimum Wage for 18 to 20 years of age workers |
| £7.55 an hour | Minimum Wage for 16-17 year olds and apprentices |
| £10.66 per day | Accommodation offset (the amount an employer can charge for accommodation) |
These rates applied from 1 April 2025. They are available to all eligible employees in the UK. Employers are legally responsible for making sure no one is paid below these rates and this applies even if their job role or sector is not listed.
Impact on Workers and Employers
This could cause price increases and or revision of staffing budgets. But a lot of businesses understand there are long-term benefits to fair pay like happier staff and lower turnover. Small firms might struggle to afford the wage hike when combined with other costs such as national insurance contributions and energy bills. But it is a legal obligation, and employers must obey or else pay the price for underpayment. If you are an employee, you should check your April 2025 payslip to ensure you are being paid at the correct rate. If you are not, talk to your employer first.
Latest Update on UK Minimum Wage Rise 2025
The increase to this year’s minimum wage is part of a longer-term plan to ensure work is fair and pays a real living wage throughout the UK. The government has said it wants to increase the National Living Wage to two-thirds of median earnings within the next few years. That means the Installments are likely to increase further in 2026 and beyond, depending on inflation and economic conditions.
The changes also represent a refocusing to target higher pay at more young adults, some of whom are likely to be earning below average rates of pay at 23 and 24. The minimum age at which workers become eligible for the National Living Wage will remain 21 the government does not envisage lower the age, but does not rule it out. They will also be watching what effect these increases have on workers and businesses.
FAQs
Do part-time workers get the new wage?
Yes, the minimum wage rates for all workers, including those in casual or part-time employment. The hourly system shall be observed in any event.
How much wages are increased?
From £11.44 to £12.21.
Which department in UK handles these operations?
Department of Business an Trade in the UK
