Contents
- Minimum Wage 2025
- Historical Rates 2020–2025
- Weekly, Monthly & Annual Wages
- National Minimum vs Living Wage
- Apprentice Wages 2025
- London Living Wage
- Wage Growth Trends
- Forecast 2026
- FAQs
- Retirement Calculator
Minimum Wage 2025
In April 2025, the UK raised its minimum wage again. The National Living Wage now covers workers aged 21 and above at £12.21/hour. This increase reflects inflationary pressures and government commitments to maintain worker living standards. Compared with EU countries, the UK’s minimum wage is among the highest, though the cost of living in cities like London reduces its relative value...
Historical Wages 2020–2025
The following table shows the official UK minimum wage for different groups from 2020 to 2025, followed by analysis of each year.
| Year | 21+/NLW | 18–20 | Under 18 | Apprentice |
|---|---|---|---|---|
| 2025 | £12.21 | £10.00 | £7.55 | £7.55 |
| 2024 | £11.44 | £8.60 | £6.40 | £6.40 |
| 2023 | £10.42 | £7.49 | £5.28 | £5.28 |
| 2022 | £9.50 | £6.83 | £4.81 | £4.81 |
| 2021 | £8.91 | £6.56 | £4.30 | £4.30 |
| 2020 | £8.72 | £6.45 | £4.55 | £4.15 |
2020: Despite the pandemic, wages rose modestly. 2021: Continued increases despite economic uncertainty. 2022: Larger rise due to inflation. 2023–2025: Substantial increases reflecting cost-of-living crisis.
Weekly, Monthly & Annual Wages
At 37.5 hours per week, an adult worker on £12.21/hour earns ~£458/week, £1,985/month, or £23,820/year. At 40 hours, earnings increase proportionally. Part-time workers earn less, but the hourly rate remains the same. Compared with UK median salaries (~£33,000 in 2024), the minimum wage lags significantly, highlighting income inequality.
National Minimum vs National Living Wage
The National Minimum Wage applies to workers under 21 and apprentices, while the National Living Wage is the higher adult rate. Employers must comply or face penalties enforced by HMRC. Misclassification or underpayment can lead to fines and naming-and-shaming by the government.
Apprentice Wages 2025
Apprentices under 19 or in their first year earn £7.55/hour. After the first year, older apprentices qualify for age-based rates. Many apprentices struggle with the low wage given housing and transport costs, particularly in London. Some industries top up apprentice pay to remain competitive.
London Living Wage
The voluntary London Living Wage is £13.85 in 2025, set by the Living Wage Foundation. Thousands of employers have signed up. It is higher than the statutory NLW to reflect London’s higher housing, transport, and childcare costs. Outside London, the Real Living Wage is £12.60/hour.
Wage Growth Trends
From 2020 to 2025, minimum wages grew 40%. This was driven by inflation, government policy, and labour shortages in retail, hospitality, and healthcare. Critics argue rapid increases burden small businesses, while supporters note it reduces in-work poverty and reliance on benefits.
Forecast 2026
The Low Pay Commission projects the NLW could reach £12.70–£13.00 by April 2026. Future rises will depend on inflation, productivity growth, and political decisions. Debate continues over whether to align wages with 66% of median pay, as per government targets.
FAQs
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