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Millions to get a pay rise TODAY as national minimum wage rate for 2025 kicks in – check if you’ll be £1,400 better off

Published on April 01, 2025 at 10:02 AM

Rachel Reeves is a fiscal fantasist of the highest order... there are only four things that will grow under her policies

A WAGE boost is coming today for millions of people across the country — find out how much more you could be earning.

Starting today, workers will see an increase in their monthly pay packet as the national living wage rises.

One pound coins on payslips showing net pay.
You could be racking up more pay from this month onwards due to a national wage hike

From Tuesday those aged 21 and over will see their pay go up by 6.7%, from £11.44 to £12.21 per hour.

This means full-time workers of the eligible age will earn an extra £1,400 a year.

While workers aged 18 to 20 will get an uplift of £1.40, moving the national minimum wage from £8.60 to £10 per hour.

And for 16 to 17 year-olds on an apprenticeship, their hourly rate will move from £6.70 to £7.55 an hour.

Angela Rayner says the increase will help put more money in people’s pockets, just as families are hit by higher bills for council tax, energy, and water.

She said: “This pay rise for over 3 million of the lowest paid workers was a priority for this government and means we're already giving hard working people more money in their pockets and a proper wage increase worth over twice the rate of inflation.”

The national minimum wage is the minimum amount of pay per hour that workers are entitled to.

You are eligible to receive the pay rate if you work full-time or part-time.

Meanwhile, theNational Living Wageis the minimum wage for those over 21 and is slightly higher.

Is Labour's National Insurance hike a tax on working people?

It was previously only available to workers over 23, but this was adjusted to 21 and over in November 2023.

The National Living Wage is set annually and typically rises eachspringto keep pace withinflationand thecost of living.

The annual adjustment is made to help keep wages in line with inflation and the cost of living.

The last increase in April 2024 saw the National Living Wage jump by 10%.

If you qualify for the changes but don't notice an increase on your next payslip, you should challenge it with your employer.

If this is ineffective, the next step is to file a complaint on the government's website.

You can do this by visiting the Government website.

Employers who do not pay the minimum wage can be publicly “named and shamed”.

Those who blatantly fail to comply are also at risk of facing criminal prosecution.

A breakdown of minimum wage changes

The changes on Tuesday, April 1, will mean:

  • The National Living Wage for those aged 21 and over will rise from £11.44 per hour to £12.21 per hour.
  • The National Minimum Wage for 18- to 20-year-olds rises from £8.60 to £10.00 per hour.
  • The apprenticeship rate for 16- to 17-year-olds rises from £6.40 to £7.55 per hour.

SPRING BUDGET WOES

While the Government insists a wage hike will put more money in worker's pockets — many are not convinced.

The increase, aimed at tackling low pay, comes just as households are hit by hikes in council tax and energy bills.

Energy bills for a typical household are set to rise to £1,849 annually, an increase of £111, as Ofgem’s new price cap comes into effect.

The energy price cap is the maximum amount energy suppliers can charge you for each unit of gas and electricity.

Water bills will also go up, with households in England and Wales seeing an average rise of £10 a month, depending on their water company.

To find out how your energy and water bills may be changing you should reach out to your supplier.

To make matters worse, most councils in England will raise council tax by 4.99%, the maximum allowed.

Also, from April 6, employers will have to pay more National Insurance (NI) – it’s going up from 13.8% to 15%.

This comes at a dangerous time for the high street, with many small businesses and even big chains like Shoezone, WHS Smith and New Look feeling the weight of the previous hike.

For example, Shoe Zonehas levied blame at ChancellorRachel Reeves for creating “unviable trading costs” for businesses, after it closed over 50 stores over the last year and announced that 297 are at risk.

New Look has also ramped up a store closure programme to prepare for this month's NI increase.

Opponents of the Government say these price hikes will leave families up to £3,536 worse off during this Parliament, and argue that the “jobs tax”; is hurting working families.

Conservative leader Kemi Badenoch said: “Rachel Reeves has gambled with the economy.

“The Prime Minister might think this is all just pocket money, but Britain’s working families will certainly notice the £3,500 Labour ministers have cost them.”

Howver many unions have welcomed the wage increase, with TUC general secretary Paul Nowak saying it would “make a real difference”; to the lowest-paid workers and set out a path to ending “the outdated and unfair youth rates”;.

“More money in working people’s pockets means more spend on our high streets – that’s good for workers and good for local economies,”; he said.

Spring Budget at a glance

Do you have a money problem that needs sorting? Get in touch by emailing [email protected].

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