London Daily

Focus on the big picture.
Tuesday, Dec 02, 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
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
Macron Says Washington Pressuring EU to Delay Enforcement of Digital-Regulation Probes Against Meta, TikTok and X
UK’s DragonFire Laser Downs High-Speed Drones as £316m Deal Speeds Naval Deployment
UK Chancellor Rejects Claims She Misled Public on Fiscal Outlook Ahead of Budget
Starmer Defends Autumn Budget as Finance Chief Faces Accusations of Misleading Public Finances
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
UK Budget’s New EV Mileage Tax Undercuts Case for Plug-In Hybrids
UK Government Launches National Inquiry into ‘Grooming Gangs’ After US Warning and Rising Public Outcry
Taylor Swift Extends U.K. Chart Reign as ‘The Fate of Ophelia’ Hits Six Weeks at No. 1
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
European Powers Urge Israel to Halt West Bank Settler Violence Amid Surge in Attacks
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
UK Extends Sugar Tax to Sweetened Milkshakes and Lattes in 2028 Health Push
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
Google Struggles to Meet AI Demand as Infrastructure, Energy and Supply-Chain Gaps Deepen
Car Parts Leader Warns Europe Faces Heavy Job Losses in ‘Darwinian’ Auto Shake-Out
Arsenal Move Six Points Clear After Eze’s Historic Hat-Trick in Derby Rout
Wealthy New Yorkers Weigh Second Homes as the ‘Mamdani Effect’ Ripples Through Luxury Markets
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
UK Unveils Critical-Minerals Strategy to Break China Supply-Chain Grip
×