Around 2.7 million workers across the UK will see a pay rise this week as the national minimum wage increases take effect.
For those aged 21 and over, the hourly rate rises by 50p to £12.71. Workers aged 18 to 20 will receive a larger boost, with an 85p increase bringing their hourly pay to £10.85. Meanwhile, under-18s and apprentices will see their rate rise by 45p to £8 per hour.
Campaigners have broadly welcomed the increases, highlighting their positive impact on lower-paid workers amid ongoing cost pressures. However, many businesses have expressed concern about the cumulative effect of rising employment costs. Some employers warn they may need to increase prices, reduce hiring, or cut staff to manage the higher wage bill.
The Low Pay Commission, which advises the Government on minimum wage levels, said previous increases for workers aged 21 and over have not had a significant negative effect on employment. These latest changes follow substantial rises last year, including a 6.7% increase for over-21s and a 16.3% increase for 18 to 20-year-olds. Employers have also faced higher National Insurance contributions over the same period.
Looking ahead, ministers are reviewing plans to introduce a single adult minimum wage rate. Labour has pledged to remove age-based pay bands, aiming to align wages for 18- to 20-year-olds with those of 21-year-olds and older. Prime Minister, Sir Keir Starmer, said the increases are a step forward, but added that further action is needed to reduce costs more widely.
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