Marvin OnumonuThe Government confirmed an increase to the National Living Wage to £12.71 an hour for workers aged 21 and over, ahead of the Autumn Budget 2025.
Workers aged 18 to 20 will see their pay rise by 85p to £10.85, while under-18s and apprentices will get a 45p increase to £8 an hour.
Based on the National Living Wage rates due in April 2026, someone working full-time will earn £1,440 less than a person receiving the real living wage across the UK, and £4,070 less than those earning the London living wage.
Katherine Chapman, director of the Living Wage Foundation, said: “The boost to the legal minimum wage is a really positive move that will ease some of the pressure on low paid workers hit by sharp price rises over the last year. It will still fall short of the voluntary real Living Wage which is the only wage rate based solely on the cost of living.
“The real Living Wage is currently £13.45 in the UK with a higher rate of £14.80 in London.
“Over 16,000 employers are already committed to going beyond the statutory minimum to make sure all their workers, including contractors like cleaners and security guards, are always paid a wage that meets living costs so can live with dignity.”
Chapman added: “Half the FTSE 100 as well as thousands of smaller companies are part of this movement because they know the real Living Wage is an investment in their workforce which builds a stronger business through better morale, retention and productivity.”
