The Government has accepted the Low Pay Commission’s (LPC’s) recommendations for the rates of the National Living Wage (NLW) and National Minimum Wage (NMW) to apply from April 2025. These figures are the first produced by the LPC which include the cost of living and expected trends in inflation up to March 2026.
The government aims to align the National Minimum Wage (for 18-20 year-olds) and National Living Wage (for workers aged 21 and above) over time, eventually creating a single adult wage rate.
National Minimum Wage rates from 1 April 2025
| Applies to | Old rate | New rate | |
| National Living Wage | Workers aged 21 and over | £11.44 per hour | £12.21 per hour |
| National Minimum Wage | Workers aged 18 to 20 | £8.60 per hour | £10.00 per hour |
| National Minimum Wage | Workers aged 16 and 17 | £6.40 per hour | £7.55 per hour |
| Apprentice rate | Apprentices | £6.40 per hour | £7.55 per hour |
| Accommodation offset | Workers who are provided with accommodation by their employers | £9.99 per day | £10.66 per day |
Hard times for employers
The increases this year are substantial, which will be a big hit for employers – especially given the other payroll changes made in the Autumn budget. From April 2025, the rate of employer’s NI contributions (NICs) will increase by 1.2 percentage points to 15%, and employers will start to pay NICs on employees’ earnings from £5,000, instead of the current £9,100 threshold.
Further reading
The Low Pay Commission plans for national living wage from next year – Hunter Law
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