Government confirms wage rises for millions

The government has laid legislation that confirms a new National Living Wage of £12.21 and a new National Minimum Wage of £10.00 per hour from 1 April.

The 6.7% increase to the National Living Wage, which was unveiled at last year’s Budget, will be worth £1,400 a year for an eligible full-time worker.

In addition, the National Minimum Wage for 18-20-year-olds is also set to increase by £1.40 to £10.00 per hour, which means full-time younger workers eligible for the rate will see their pay boosted by £2,500 a year.

The minimum hourly wage for an apprentice is also set to be boosted this year, with an 18-year-old apprentice seeing their minimum hourly pay increase by 18.0%, a pay bump from £6.40 to £7.55 an hour.

Chancellor Rachel Reeves said: “This government promised a genuine living wage for working people that will support people with the cost of living, creating a workforce that is fit and ready to help us deliver number one mission to growth the economy.

“This pay boost for millions of workers is a significant step towards delivering on that promise.”

Jason Davenport, Chief Executive of The Chartered Institute of Payroll Professionals (CIPP), added: “With continued pressure on employers, it’s imperative that we ensure the new rates are understood, implemented and paid to workers correctly.

“Compliance can be complex with issues for employers to be alert to around, for example, salary sacrifice arrangements.”

The CIPP is urging employers and agents to get their payroll processes ready for 1 April 2025