Millions of Britons to see £900 pay rise as minimum wage increase comes into force

Those aged 21 and above now earn £12.71 per hour, up from the previous rate of £12.21.

The changes, which took effect on 1 April, will benefit approximately 2.7 million young and older workers throughout the country.

The National Living Wage applies to most employees who have reached 21 years of age, representing the legal minimum that employers must pay their staff.

Younger employees are also benefiting from substantial increases to their hourly rates.

Workers between 18 and 20 years old now receive £10.85 per hour, an 8.5 per cent rise from the previous £10 rate.

This larger percentage increase for younger workers reflects the Government's ambition to narrow the gap between age-based pay bands.

For those in this age bracket working full-time hours, the uplift translates to an additional £1,500 annually.

Teenagers aged 16 and 17, along with apprentices, have seen their minimum hourly pay climb by six per cent to £8, up from £7.55.

Apprentices under 19, or those 19 and over in their first year of training, qualify for this apprentice rate.

The Government has framed these increases as a direct response to financial pressures facing ordinary people.

Chancellor of the Exchequer Rachel Reeves stated: "I know that the cost of living is still the number one issue for working people and that the economy isn't working well enough for those on the lowest incomes."

She added: "Too many people are still struggling to make ends meet. And that has to change."

The Chancellor emphasised that the wage rises would ensure "those on low incomes are properly rewarded for their hard work."

Ministers accepted the recommendations put forward by the Low Pay Commission when announcing the increases in November 2025.

Trade union leaders have welcomed the wage increases as evidence of the government delivering on its commitments.

Paul Nowak, General Secretary of the TUC, said: "The Government is delivering on its promise to make work pay."

He noted that with living costs remaining stubbornly high, an above-inflation pay rise would make a genuine difference for the lowest-paid workers.

Mr Nowak added: "Putting more money in people's pockets is good for workers and good for the economy as it goes straight back into our high streets and local businesses."

The TUC chief also backed the Government's plans to eliminate youth wage bands, arguing that young workers deserve equal pay since they face the same bills as everyone else.