News

Government to begin giving millions of UK workers ‘significant’ pay rises from this week

About time.

Emily Sergeant Emily Sergeant - 2nd April 2025

The Government is to begin giving more than three million workers across the UK a ‘significant pay boost’ from this week.

Announced as part of last year’s Budget, and in a bid to ‘put thousands of pounds back in the pockets of working people every year’, the Government confirmed back at the beginning of February that a new National Living Wage of £12.21 per hour, and a new National Minimum Wage of £10 per hour would take effect from April onwards.

Ministers said the 6.7% increase to the National Living Wage – which is now worth £1,400 a year for an eligible full-time worker – is a ‘significant step’ towards delivering the manifesto commitment to deliver a ‘genuine’ living wage.  

On top of this, the National Minimum Wage for 18-20-year-olds is also set to go up by a record increase of £1.40 an hour, which means full-time younger workers eligible for the rate will see their pay boosted by £2,500 a year.  

The minimum wage pay boot has also been called the first step towards removing the ‘unfair’ age-bands that see a 21-year-old getting paid more than a 20-year-old for doing the same job. 

ADVERTISEMENT

According to the Government, this is also the first time the National Living Wage has taken into account the cost of living and inflation.

“In the last Parliament, living standards were the worst on record and sky-high inflation was crushing working people’s finances,” commented Chancellor Rachel Reeves, explaining why the pay boosts are being introduced.

ADVERTISEMENT

“Making work pay is good for workers, will strengthen businesses’ workforces, and will grow our economy for years to come.

“It’s a key milestone on my number one mission to get more money in people’s pockets as we deliver our Plan for Change.”

Read more:

Not only that, but the minimum hourly wage for an apprentice is also set to be boosted later this year too, with an 18-year-old apprentice seeing their minimum hourly pay increase by 18% to £7.55 an hour. 

ADVERTISEMENT

As a result of these particular changes, a further four million workers also could benefit from the positive spill-over impacts of the rate increases.   

Featured Image –