Increased minimum wage rates

The government has announced the new National Living Wage (NLW) rates that will apply from April 2025, accepting the recommendations of the Low Pay Commission (LPC).

The government had asked the commission to take account of the cost of living, in particular, when making recommendations.

It also asked the LPC to ensure the NLW rate does not drop below two-thirds of median earnings, and to take account of the impact on business, competitiveness, the labour market and the wider economy.

The increases will be:

• 21 and over — a rise from £11.44 to £12.21 an hour;

• 18-20 — a rise from £8.60 to £10 an hour; and

• 16-17 and apprentices — a rise from £6.40 to £7.55 an hour.

The increase for under-21s is the largest on record.