London Daily

Focus on the big picture.
Friday, Jun 20, 2025

Minimum wage rises for two million workers

Minimum wage rises for two million workers

Around two million of the UK's lowest-paid workers will get a pay rise from Thursday as the minimum wage goes up.

The National Living Wage will rise 2.2% to £8.91, the equivalent of over £345 a year for a full-time employee.

It will also be given to 23 and 24-year-olds for the first time, not just those aged 25 and over.

Statutory rates for apprentices and those aged 18-22 will also rise, along with the voluntary "Real Living Wage".

However, hundreds of thousands of low paid workers on furlough will see no uplift at all after they were excluded.

Ministers said the increases to minimum wages would particularly benefit workers in sectors such as retail, hospitality and cleaning and maintenance.

Prime Minister Boris Johnson said it would be "a welcome boost to families right across the UK".

Business Secretary Kwasi Kwarteng urged "all workers" to check their pay packets to ensure they were "getting what they are entitled to, and remind employers of their duty to pay the correct wage".

Minimum wage increases from 1 April:


*  From £8.72 to £8.91 an hour for workers over the age of 23

*  From £8.20 to £8.36 for those aged 21-22

*  From £6.45 to £6.56 for 18 to 20-year-olds

*  From £4.55 to £4.62 for under-18s

*  From £4.15 to £4.30 for apprentices

The voluntary Real Living Wage will rise to £10.85 an hour in London and £9.50 outside the capital, but only a small minority of employers have signed up to pay it.

The foundation promoting it warned there was still a "substantial gap" between the statutory rates and one based on the actual cost of living.

Furloughed miss out


Much of the UK's retail and hospitality industries remain closed due to Covid, meaning many of the lowest paid workers are on furlough and will miss out on a pay rise.

They will continue to get 80% of their usual income, based on pre-pandemic rates for the minimum wage.

Around 800,000 of the lowest paid workers were on furlough in February, according to the House of Commons Library.

The government said furloughed workers who returned to work after 1 April would move onto the new minimum wage rates for hours worked.


Frances O'Grady, general secretary of the Trades Union Congress, said nobody should be expected to get by on less than the minimum wage.

"Low-paid workers on furlough have bills to pay like everyone else," she said.

"The government should guarantee that everybody will get at least the full rate of the minimum wage. And it should give all minimum wage workers a decent pay rise."

'Wiped out'


Mike Hawking of the Joseph Rowntree Foundation described the boost to the minimum wage as "necessary" but said that the pandemic had revealed the urgency of taking further steps to tackle in-work poverty.

"As we start to recover from the impact of the last year, too many workers are finding that minimum wage increases are being wiped out due to inadequate social security, insufficient hours available to them, and high housing costs."

Bryan Sanderson, chairman of the Low Pay Commission, which recommends the level at which the minimum wage should be set, said: "This week's increase is our first step towards the government's target of two-thirds of median earnings.

"It is a real-terms increase, meaning that an hour's work can buy more than it could last year at the start of the pandemic. The level of the new rate however also reflects the need to protect workers from job losses."

The commission said its best estimate for the National Living Wage rate in 2022 is £9.42, but this is subject to more uncertainty than usual and is likely to change.


This rise in the legal minimum wage will be welcome news, particularly as most households across the UK are also seeing their bills going up from the start of April. Planned price rises kick in for gas and electricity, council tax, water charges, the license fee, TV and broadband rates, and NHS prescription charges in England. It'll be a stretch for many.

For those minimum wage staff who are on furlough at the moment the news is even harder. Pay for those who would normally be working in bars, restaurants, hairdressers, hotels will continue to be based on 80% of their pre-Covid earnings.

They wont get the new pay rise until they start back to work again, but given the timetable on easing restrictions, many may be heading back to full employment soon.

Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×