The National Minimum Wage (Amendment) Regulations 2025
The National Minimum Wage (Amendment) Regulations 2025, effective April 1, 2025, increase the UK's national living wage and minimum wage rates.
The national living wage rises from £11.44 to £12.21 per hour; the rate for 18-20 year olds increases from £8.60 to £10.00; the rate for under-18s rises from £6.40 to £7.55; and the accommodation offset increases from £9.99 to £10.66 per day.
These changes apply across England, Wales, Scotland, and Northern Ireland, amending the 2015 National Minimum Wage Regulations.
Arguments For
Improved worker standards of living: Increased minimum wage rates can help low-wage workers afford basic necessities and improve their overall quality of life.
Stimulated economic growth: Putting more money in the hands of low-income earners can boost consumer spending and stimulate economic activity.
Reduced income inequality: Raising the minimum wage can help reduce the gap between the highest and lowest earners in the country.
Legal and ethical considerations: The government has a legal obligation and social responsibility ensure fair wages across the workforce as stated in the National Minimum Wage Act 1998. These amendments adjust the current system and protect vulnerable workers against exploitation.
Arguments Against
Increased business costs: Higher minimum wages can increase labor costs for businesses, potentially leading to job losses or reduced investment.
Price increases: Businesses may pass increased labor costs onto consumers through higher prices, potentially contributing to inflation.
Reduced competitiveness: Higher minimum wages in the UK could make the country less competitive in international markets, impacting businesses and potentially future employment opportunities.
Potential for unintended consequences: While aiming to help low-wage workers, unintended negative impacts on employment, competitiveness and innovation require ongoing monitoring and evaluation.
- Citation, commencement and extent (1) These Regulations may be cited as the National Minimum Wage (Amendment) Regulations 2025. (2) These Regulations come into force on 1st April 2025. (3) These Regulations extend to England and Wales, Scotland and Northern Ireland.
This section provides the official title of the regulations, their effective date (April 1st, 2025), and confirms their application across the UK.
- Amendments to the National Minimum Wage Regulations 2015 (1) The National Minimum Wage Regulations 2015 are amended as follows. (2) In regulation 4 (the national living wage) for “£11.44” substitute “£12.21”. (3) In regulation 4A(1) (workers who qualify for the national minimum wage at a different rate)— (a) in sub-paragraph (b) for “£8.60” substitute “£10.00”; (b) in sub-paragraph (c) for “£6.40” substitute “£7.55”; (c) in sub-paragraph (d) for “£6.40” substitute “£7.55”. (4) In regulation 16(1) (amount for provision of living accommodation) for “£9.99” substitute “£10.66”.
This section details the specific amendments to the 2015 National Minimum Wage Regulations.
It raises the national living wage (for those 21 and over) from £11.44 to £12.21 per hour.
It also increases the minimum wage for 18-20 year olds from £8.60 to £10.00, for under-18s from £6.40 to £7.55, and adjusts the daily deduction for provided accommodation from £9.99 to £10.66.
Justin Madders Parliamentary Under-Secretary of State Department for Business and Trade 26th March 2025
This section indicates the signatory and their role within the Department for Business and Trade, along with the date of signing.
Explanatory Note (This note is not part of the Regulations) These Regulations amend the National Minimum Wage Regulations 2015 (“the 2015 Regulations”) (S.I. 2015/621). These Regulations come into force on 1st April 2025. Regulation 2(2) increases the rate of the national living wage for workers who are aged 21 or over from £11.44 to £12.21 per hour (regulation 4 of the 2015 Regulations). Regulation 2(3)(a) increases the rate of the national minimum wage for workers who are aged 18 or over (but not yet aged 21) from £8.60 to £10.00 per hour (regulation 4A(1)(b) of the 2015 Regulations). Regulation 2(3)(b) increases the rate of the national minimum wage for workers who are under the age of 18 from £6.40 to £7.55 per hour (regulation 4A(1)(c) of the 2015 Regulations). The apprenticeship rate applies to workers within regulation 5(1)(a) and (b) of the 2015 Regulations. Regulation 2(3)(c) of these Regulations increases the rate for such workers from £6.40 to £7.55 per hour (regulation 4A(1)(d) of the 2015 Regulations). Regulation 2(4) increases the accommodation offset amount which is applicable where any employer provides a worker with living accommodation from £9.99 to £10.66 for each day that accommodation is provided (regulation 16(1) of the 2015 Regulations). A full regulatory impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector is available from the Employment Rights Directorate, Department for Business and Trade, Old Admiralty Building, London SW1A 2AY and is annexed to the Explanatory Memorandum which is available alongside the instrument on www.legislation.gov.uk.
The explanatory note provides further clarification on the amendments made to the 2015 regulations and reiterates the changes to the minimum wage rates and accommodation offset.
It also points to the availability of a regulatory impact assessment.