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Minimum wage set to increase by 6.7%

Yesterday, on the recommendation from the Low Pay Commission (LPC) the government confirmed that from April 2025, the national living wage will increase.

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.

This will mean a pay rise for over 3 million workers next year with an increase of 6.7% or £1400 per annum for a full time worker. This is the governments steps towards ensuring the minimum wage is a genuine living wage.

The NLW will increase from £11.44 to £12.21 an hour, the rate for 18-20 years old will go up to £10 per hour, an increase of £1.40 and the largest increase on records as it moves forwards parity with 21 year olds and older.

Apprentice rates will increase to £7.55 per hour.

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 from 21 to 18; this follows the LPC’s ambition and advice.

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