Over three million workers will receive a pay boost after Chancellor Rachel Reeves confirmed the National Living Wage will increase from £11.44 to £12.21 an hour from April 2025.

The 6.7% increase is worth £1,400 a year for an eligible full-time worker. The National Minimum Wage for 18 to 20-year-olds will also rise from £8.60 to £10.00 an hour. This £1.40 increase will mean full-time younger workers eligible for the rate will see their pay boosted by £2,500 next year.

The government says this is the first step towards aligning the National Minimum Wage and National Living Wage to create a single adult wage rate.

The minimum hourly wage for an apprentice is also boosted next year, with an 18-year-old apprentice in an industry like construction seeing their minimum hourly pay increase by 18%, a pay rise from £6.40 to £7.55 an hour.     

Ms Reeves said:

‘This government promised a genuine living wage for working people. This pay boost for millions of workers is a significant step towards delivering on that promise.’

Internet link: HMRC press release