On 1st April 2025, minimum wage rates have increased. This short report from the Low Pay Commission looks at the impact of those changes and the change to National Insurance.
Increases in all rates of the National Minimum Wage (NMW), including the National Living Wage (NLW), come into effect for pay periods starting on or after from 1st April 2025. These increases were announced by the Government last October around the time of the Autumn Budget 2024, following recommendations by the Low Pay Commission (LPC).
The uprating report from the LPC looks at the likely effects of these changes.
The LPC is continuing to gather evidence towards future recommendations to the Government, including via a programme of regional visits. We will launch our written consultation in the near future.
The LPC expect that:
- The April 2025 increase will ensure a real time rise by March 2026
- Household incomes will overall rise by less than the NLW increase
- The number of UK jobs that pay minimums will increase overall as the rise catch’s more pre-existing pay levels that were previously higher
- Large increases to the youth and apprenticeship rates will reduce the gap with the National Living Wage increasing the coverage
- The combined National Insurance Increase and the minimum wage increases will result in significant cost increases for employers
- Changes in the Employment Allowance (an amount of £10,500 that can be offset against employers secondary NIC) will mitigate some of the cost increases for the smallest employers
- Young workers won’t attract higher NICs, lowering the relative cost
PAYadvice.UK 10/4/2025
Paid for, no doubt, by the money stolen from the pensioners. So nice the government are looking out for the lower paid unless, of course, they’re elderly.