London Daily

Focus on the big picture.
Saturday, Jul 12, 2025

What is the minimum wage and how much is it?

What is the minimum wage and how much is it?

Boris Johnson said in his speech to the Conservative Party conference that he wants to move "towards a high-wage, high-skill, high productivity and low tax economy".

It's fuelled speculation - and media reports - that the national living wage will soon be raised to £9.42.


What is the minimum wage?


The UK national minimum wage sets out the least a worker can be paid per hour by law.

There are two types:

*  the National Living Wage applies to workers over the age of 23
*  the National Minimum Wage applies to workers above school leaving age but under 23

The levels for both - along with the apprentice rate - usually increase every April.

Any employer not paying the minimum wage can be fined by the UK tax authority, HMRC.

If you think you should be getting the minimum wage and aren't, you can complain via the HMRC website. You can also get advice from the Acas website or by calling its helpline on 0300 123 1100.


How much is the minimum wage?

*  National Living Wage for over-23s: £8.91 an hour

*  National Minimum Wage for those aged 21-22: £8.36

*  National Minimum Wage for 18 to 20-year-olds: £6.56

*  National Minimum Wage for under-18s: £4.62

*  The Apprentice rate: From £4.30

The apprentice rate applies to people aged under 19, or people over 19 but in the first year of their apprenticeship.

If apprentices are older than 19 and have finished the first year of their apprenticeship, they are entitled to the relevant minimum wage for their age group.

The minimum wage is the same across all parts of the UK, in England, Scotland, Wales and Northern Ireland


Who sets the minimum wage?


The rates are decided each year by government and based on the recommendations of independent advisory group called the Low Pay Commission.

It bases its recommendations on the state of the economy, and considers how many people are in work, what's happening to everyone's earnings and how much they are having to pay for essentials such as food and housing.

The Commission usually publishes its recommendations in November to take effect in the following April.


Who benefits from the minimum wage?


People must be of at least school-leaving age to be eligible for the minimum wage, and must be employed.

Workers can be part-time, casual, agency workers, piecemeal workers, apprentices, trainees, workers on probation, disabled workers, agricultural workers, foreign workers, seafarers or offshore workers, according to government guidance.


People who don't qualify include the self-employed, company directors, volunteers, members of the armed forces, prisoners and people living and working in a religious community.

People with disabilities or those in long-term unemployment who take part in a government work programme are paid fixed amounts at different stages of the programme, which amounts to less than the minimum wage.

Work done by prisoners is paid at a minimum of £4 a week, while students on work placements of less than a year as a required part of their studies are not entitled to be paid anything.


When was the minimum wage introduced?


The law to introduce the minimum wage was passed in 1998 by the Labour government and it came into force the following year.

It started at £3.60 for those 22 and older, and £3.00 for 18-21 year olds.

Before the minimum wage was introduced, the lowest-paid people consistently saw the slowest growth in their wages.

The introduction of the minimum wage reversed this trend, according to the Low Pay Commission.


Did the minimum wage cost jobs?


Before the minimum wage was introduced, there was concern that it would cost jobs, because employers would compensate for their higher wage bill by hiring fewer people.

But this didn't turn out to be the case.

There's no evidence of an overall loss of jobs linked to the minimum wage, and only weak evidence of negative impacts on some groups of workers.


What is the 'Real Living Wage'?


The voluntary "Real Living Wage" is set by the Living Wage Foundation charity.

It says the "real living wage" is £10.85 an hour in London and £9.50 elsewhere, but only a small minority of employers have signed up to pay it.

Newsletter

Related Articles

0:00
0:00
Close
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
×