National Minimum & Living Wage Increases
Posted on 24th January 2025
As of April 2025, significant changes are being implemented to the National Minimum Wage (NMW) and National Living Wage (NLW) in the United Kingdom. These adjustments reflect the government’s ongoing commitment to ensuring fair pay and improving the financial well-being of workers across the country.
Whether you're an employee, employer, or simply interested in the latest economic developments, understanding these changes is crucial. In this post, we'll break down the new rates, explore who is affected, and discuss the broader implications for the UK workforce.
Current rates & April 2025 increased rates:
Age of Worker |
Current Hourly Rate |
Hourly Rate from 1st April 2025 |
---|---|---|
21 and over (NLW) |
£11.44 |
£12.21 |
18 to 20 (NWM) |
£8.60 |
£10.00 |
Under 18 |
£6.40 |
£7.55 |
Apprentice |
£6.40 |
£7.55 |
It is a legal requirement that workers are paid in accordance with the applicable rates.
Apprentices
Apprentices are entitled to the apprentice rate if they're either:
Aged under 19;
Aged over 19 and in the first year of their apprenticeship.
For example, an apprentice aged 21, in the first year of their apprenticeship, is entitled to a minimum hourly rate of £7.55, from April 2025.
Apprentices are entitled to the minimum wage, for their age, if they're both:
Aged 19 or over;
Have completed the first year of their apprenticeship
For example, an apprentice aged 21, who has completed the first year of their apprenticeship, is entitled to a minimum hourly rate of £12.21, from April 2025.

Implications for Employers and Employees
For employers, these changes mean that you should consider reviewing current pay structures to ensure compliance with the new rates. It's essential for your business to update their payroll system and communicate these changes to their employees effectively.
Employees, on the other hand, can look forward to a boost in their income, which could improve their quality of life and financial security. However, they should also be aware of how these changes might affect their tax obligations and eligibility for certain benefits.
If you need any tax advice in Milton Keynes give a call to the team at Holmes Accountancy on 01908 315716 or contact us here.
The tax tip is provided for general guidance only; further advice should be sought, for specific issues.
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