The UK is set for a significant uplift in minimum pay from 1 April 2025, marking one of the largest annual increases in recent years. Working people aged 21 or over will see the hourly rate jump to £12.21, while those aged 18–20 will move up to £10.00. Younger workers and apprentices also benefit from sharper percentage increases.
This change isn’t just a pay rise — it signals a shift in national policy toward better protection for lower‑paid workers. As employment patterns evolve and living costs rise, the increase is both timely and consequential.
UK Minimum Wage Hike 2025-2026
In the UK, the statutory minimum pay is governed by two concepts:
- The National Minimum Wage Act 1998 (NMW) – the baseline legal minimum for workers depending on age and apprenticeship status.
- The National Living Wage (NLW) – a higher minimum rate for adult workers (in this case those aged 21+) approved by government.
Following recommendations from the Low Pay Commission, the government has announced that from 1 April 2025 these rates will rise to: - £12.21 per hour for those aged 21 and over.
- £10.00 per hour for workers aged 18‑20.
- £7.55 per hour for under‑18s and apprentices in certain cases.
These changes come into effect across the UK (England, Wales, Scotland, Northern Ireland) on the date specified.
Overview of UK Minimum Wage Increase 2025–2026
| Feature | Details |
|---|---|
| Effective Date | 1 April 2025 |
| Adult Rate (21 and over) | £12.21 per hour |
| Youth Rate (18–20) | £10.00 per hour |
| Under-18 Rate | £7.55 per hour |
| Apprentice Rate | £7.55 (if under 19, or 19+ in first year of apprenticeship) |
| Applies To | All UK regions (England, Wales, Scotland, Northern Ireland) |
| Eligible Work Types | Full-time, part-time, temporary, casual, zero-hours, agency, apprentices |
| Legal Enforcement | HMRC enforcement and ACAS dispute support |
| Review Frequency | Reviewed annually based on Low Pay Commission recommendations |
Hourly Rate Table (Effective 1 April 2025)
| Age / Status | Hourly Rate |
|---|---|
| Aged 21 and over | £12.21 |
| Aged 18 to 20 | £10.00 |
| Aged 16 to 17 | £7.55 |
| Apprentice (under 19, or first year) | £7.55 |
How can I Qualify for it?
- To qualify for the adult rate (£12.21) you must be aged 21 or over, and not an apprentice in your first year. (If you’re a 21+ apprentice who has completed the first year, you get the adult rate).
- For younger workers (18‑20), the £10.00 rate applies.
- For under 18s (assuming above school‑leaving age) the lower rate (£7.55) applies.
- If you’re under 19, or aged 19+ but still in the first year of apprenticeship, then the £7.55 rate applies. If aged 19+ and you’ve completed the first year of apprenticeship then you are entitled to the rate for your age.
- The law applies whether you’re full‑time, part‑time, temporary or casual.
- The age bands apply at the time of payment, not at the start of employment.
- Employers must check status carefully (age, apprenticeship year, hours) to ensure compliance.
What are the Benefits of the Program?
- Higher incomes for low‑paid workers: Workers aged 21+ benefit directly from a pay rise to £12.21, helping with cost‑of‑living pressures.
- Reduced wage inequality by age: Big boost for 18‑20 age‑group (£10.00) shrinks gap vs older workers.
- Encouragement for apprentices: Apprentice rate rises help early‑career entrants and training roles.
- Stimulus to consumer spending: Raising minimum pay increases disposable income for many households, which can support economic growth.
- Signals government commitment: This wage uplift shows the government prioritising fair pay and protecting workers.
What are the Processing Details?
Here is a quick table summarising what employers and workers should know:
| Item | Detail |
|---|---|
| Effective date | From 1 April 2025 employers must apply the new rates |
| Hourly rate | As per age bands (see table above) |
| Full‑time equivalent weekly earnings | For 40 hours at £12.21 ≈ £488.40 before tax |
| Employer obligations | Must pay correct rate, monitor age/status, update payroll systems |
| First year apprentice exception | Apply apprentice rate if under 19 or first year of apprenticeship |
| Monitoring & enforcement | Workers can complain to enforcement bodies if underpaid |
| Next review | Preparations for April 2026 already underway |
Comparison of Rates
Historical Rates Comparison
| From Date | Aged 21+ (or adult rate) | Aged 18–20 | Apprentice/Under 18 | Increase % for 21+ |
|---|---|---|---|---|
| 1 April 2024 | £11.44 | £8.60 | £6.40 | – |
| 1 April 2025 | £12.21 | £10.00 | £7.55 | 6.7% |
Insights & Forecasts
- The increase of 6.7% for 21+ is relatively modest compared to younger age bands (18‑20 saw +16.3%).
- The government’s target is to align the adult minimum wage with two‑thirds of median earnings, which for April 2026 would imply a rate around £12.55‑£12.86.
- There is an ongoing consultation about narrowing age‑based differences (so younger adult workers get closer rates).
- The statutory minimum still falls short of the voluntary “real Living Wage” (which is higher).
Recent Updates
- On 2 months ago the government published updated estimates for the NLW (for 2026) with a central estimate of £12.71 potentially required.
- On 17 March 2025 the National Minimum Wage (Amendment) Regulations confirmed the rise to £12.21 for 21+ from 1 April.
- The Low Pay Commission’s 2025 consultation letter notes the government asks for recommendations on under‑18 and apprentice rates for April 2026.
Why It Matters?
- For workers: This uplift means better pay for millions of workers on low hourly rates. For example, a full‑time worker at £12.21 will earn significantly more per year than at the previous rate.
- For employers: Salary costs increase — particularly in sectors with many younger/low‑paid workers (retail, hospitality). Employers must adjust payroll and budgeting.
- For the economy: Higher minimum wages can boost consumption as lower‑paid workers spend more; however, if wage rises are too sharp relative to productivity, they may squeeze margins or increase inflation.
- For policy: The move sends a signal that the government is committed to wage fairness and closing age‑based gaps. It also pressures employers to rethink pay structures.
- For apprentices and younger workers: The steep percentage rises for younger cohorts reduce inequality but raise questions about employment incentives and training opportunities.
Expert quote: The Living Wage Foundation said the rate is “a welcome boost for low‑paid workers … but still falls short of the real Living Wage”.
FAQs
Who qualifies for the £12.21 per hour rate?
Workers aged 21 and over (on or after 1 April 2025), who are not in the first year of an apprenticeship, qualify for the adult rate of £12.21.
I’m 20 years old and working full‑time – what rate applies?
For someone aged 18–20, the rate from 1 April 2025 is £10.00 per hour.
I’m an apprentice aged 22 but in my first year of apprenticeship; what rate do I get?
In this case you receive the apprentice rate (£7.55) because you’re in the first year of your apprenticeship despite being older than 19.
My company pays salaried employees – does this hourly rate apply?
Yes – the employer must ensure that the effective hourly rate (salary ÷ hours worked) meets or exceeds the minimum for your age/status.
What if my employer is paying less than the new rate?
You can raise this with your employer. If unresolved, you may contact enforcement agencies (e.g., government) to claim arrears.
Will the minimum wage keep increasing after April 2025?
Yes – each year the rates are reviewed. For April 2026, estimates suggest the adult rate might rise to around £12.55‑£12.86.