New National Living Wage and National Minimum Wage Rates Announced for 2025

The new NLW for workers aged 21 and over will see a 6.7% rise, from £11.44 to £12.21 per hour—a 77p hourly increase. For younger workers, the pay rises are even steeper: those aged 18-20 will receive a 16.3% increase, moving from £8.60 to £10.00 per hour, while workers aged 16-17, including apprentices, will see their hourly rate jump by 18%, from £6.40 to £7.55.

The LPC founded its recommendations on thorough consultation with employers, workers, representatives of both groups and other expert bodies, along with a series of regional visits across the UK. The Government, for the first time, asked the LPC to consider cost-of-living pressures, alongside inflation expectations through to March 2026. The LPC anticipates it recommend rates to represent accurate increases across the whole period, meanwhile fulfilling the Government’s goal of reaching at least two-thirds of median earnings in 2024.

If you would like to discuss these new changes, please do get in touch with our Employment Team on 020 8290 0440 or employment@thackraywilliams.com.