The UK government has announced that from April 2025, the minimum wage for workers aged 21 and over will rise to £12.21 per hour. This pay increase aims to ease the burden of living costs and bring wages closer to what’s considered a true “living wage.” However, as wages go up, financial pressure on businesses—especially small ones—will also increase, potentially leading employers to reduce hiring or adjust their pay strategies.
🕰 Details of the Wage Increase
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Ages 21 and over: from £11.44 to £12.21 per hour (6.7% increase)
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Ages 18–20: from £8.60 to £10 per hour
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Apprentices: from £6.40 to £7.55 per hour — the highest percentage increase among all age groups
Background and Impact of the Wage Adjustment
This adjustment follows recommendations from the UK’s Low Pay Commission, which takes living costs into account. According to official data, over 3 million workers will benefit from the increase. The government calls this an “important step” toward fairer pay. However, financial experts say the rise is relatively modest, and if the upcoming budget includes increases in National Insurance contributions for employers, sectors like hospitality could feel the strain even more.
