Minimum Wage Increase

Minimum Wage Rates Increased from 1 April

As of 1 April 2025, increases to both the National Living Wage (NLW) and National Minimum Wage (NMW) have come into effect. The NLW has risen by 6.7%, with the NMW rising by up to 18%, depending on the age or category of the worker.

The new hourly rates are as follows:

Age/Category Rate from 1 April 2025
21 and over (NLW) £12.21
18–20 £10.00
16–17 £7.55
Apprentice Rate £7.55

The apprentice rate applies to apprentices under 19, or those aged 19 and over in the first year of their apprenticeship.

Peter Bickley, Technical Manager – Employer Taxes at ICAEW, noted that while the rise benefits workers, it adds to the pressures on employers—especially with upcoming changes to National Insurance from April 2025. He emphasised that failing to pay the correct minimum wage is a criminal offence and urged businesses to stay compliant.