In October, Chancellor Rachel Reeves confirmed that workers will a pay boost (Image: Getty)
Millions of British workers are set for a significant pay rise this year, following Labour’s Autumn Budget announcement. Chancellor Rachel Reeves unveiled the wage increase for both the National Living Wage and the National Minimum Wage last autumn, in a bid to ensure fairer salaries.
The National Living Wage is a higher rate that’s mandatory for those aged 21 and over, while the National Minimum Wage is the lowest hourly pay legally allowed for workers. However, it’s important to highlight that not all workers are entitled to this minimum pay – including an astonishing 15 job categories.
You may be surprised to hear that company directors, university students on work placements, and even members of the armed forces are not guaranteed this basic wage. also lists the following:
- People who are volunteers or voluntary workers
- People living and working in a religious community
- People working on a Jobcentre Plus Work trial for up to 6 weeks
- Prisoners
- Higher and further education students on work experience or a work placement up to one year
- Workers on a government employment programme, such as the Work Programme
- People on the following (EU) programmes: Leonardo da Vinci, Erasmus+, Comenius
- Company directors
- Self-employed people running their own business
- Workers on government pre-apprenticeships schemes
- Members of the armed forces
- People shadowing others at work
- Share fishermen
- Workers younger than school leaving age (usually 16)
- Family members of the employer living in the employer’s home
Set to roll out on April 1, 2025, changes in wages are expected to influence over three million workers. Apprentices and those aged between 16 and 17 will experience the most significant minimum wage increase, from £6.40 to £7.55 per hour – a hefty rise of 18%.
In addition, those aged 18 to 20 will also see a in their minimum wage, which will climb to £10 per hour. The final group, comprising individuals aged 21 and above, will soon enjoy a 6.7% salary increment worth 77p, pushing the National Living Wage to £12.21 per hour – an additional £1,400 annually.
A full list pinpointing these changes is below:
- Over-21s: £11.44 an hour to £12.21 an hour (6.7% increase)
- 18 to 20: £8.60 an hour to £10 an hour (16.3% increase)
- 16 to 17: £6.40 an hour to £7.55 an hour (18% increase)
- Apprentice: £6.40 an hour to £7.55 an hour (18% increase)
Wage alterations promise to impact upwards of three million employees (Image: Getty)
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After the October announcement, Chancellor Rachel Reeves said: “This Government promised a genuine living wage for working people. This pay boost for millions of workers is a significant step towards delivering on that promise.”
Deputy Prime Minister added: “A proper day’s work deserves a proper day’s pay. Our changes will see a pay boost that will help millions of lower earners to cover the essentials as well as providing the biggest increase for 18–20-year-olds on record.”
Am I being underpaid?
The Government urges Brits to make use of its to check whether they are receiving the correct wage. To do this, you’ll need to provide details such as your age, pay frequency, working hours, wage amount and other factors.
Employees can also use this tool to determine if their employer owes them back payments from the previous year. There is a separate calculator available for who have concerns about potential underpayments.