What’s happening?
The government announced earlier today that it has accepted the Low Pay Commission’s (LPC) recommendations on the rates of the National Minimum Wage (NMW), including the National Living Wage (NLW).
The new rates will apply from 1 April 2025 and are shown below:
The LPC took into account the cost of living, including trends in inflation up to March 2026 when determining the recommended NLW rate.
Why is this important?
As a result of this announcement, from April 2025 more than three million low-paid workers are in line for a pay rise. This can be seen as a significant step by Labour towards the introduction of a “genuine living wage for working people”.
Significantly, the minimum wage for workers aged 18-20 will go from £8.60 to £10 an hour, a rise of more than 16% and the largest increase on record.
What should you do?
It is a criminal offence for employers to not pay someone the National Minimum Wage or the National Living Wage and so employers should prepare accordingly ahead of the rate increases due to come into effect in April 2025.
If employers discover they have paid a worker below the correct minimum wage, they must pay any arrears immediately. This is why it is important for employers to keep records proving that they are paying the minimum wage.
Advice: If you require advice relating to the Employment Rights Bill, please contact [email protected] who will put you in touch with someone from our Trethowans Employment Team.
