Millions of workers will gain from £12.10 National Living Wage increase.

The Low Pay Commission (LPC) has announced that the national living wage is set to increase to £12.10 per hour from April 2025 – here’s everything you need to know

A significant pay increase is on the horizon for millions of UK workers as the national living wage is poised to rise to £12.10 per hour next April. The advisory body to the government on pay levels, the Low Pay Commission (LPC), has recommended raising the statutory rate from the current £11.44 an hour for individuals aged 21 and above, a figure that has notably outpaced inflation lately.

Seeking to elevate wage standards further, Deputy Prime Minister Angela Rayner has pledged to “raise the floor on wages.”

After assuming their positions, Rayner and Business Secretary Jonathan Reynolds instructed the LPC to target a raise consistent with living costs while maintaining the national living wage at no less than two-thirds of the median earnings.

Impact of the £12.10 National Living Wage Increase on Workers’ Finances

The LPC’s latest announcement suggests that to keep pace with earnings growth, wages would require a roughly 5.8% boost, which overshoots their earlier 3.9% estimate from March. This adjustment is estimated to propel the National Living Wage from its current £11.44 to £12.10 by April 2025.

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Additionally, the LPC declared their intention to use two-thirds of median earnings as a benchmark “floor” for future minimum wage advice, albeit admitting that their forecasts could be surpassed if earnings growth exceeds projections in 2024, reports Birmingham Live.

The government is poised to announce an increase in the National Living Wage during its Autumn Statement on Wednesday, October 30.
A spokesperson for the Department for Business and Trade (DBT) revealed: “We are changing the rules to put more money in working people’s pockets.”

“But we have also been clear we need to consider the businesses who pay these wages, employment prospects, and the impact on the wider economy, which is what we instructed the Low Pay Commission to do.”

“We believe a hard day’s work deserves a fair day’s pay and that’s exactly what our Make Work Pay plans will do working in conjunction with business.”

Additionally, the government plans to overhaul the minimum wage system by introducing a unified, true living wage, and abolishing the age-related variations in statutory pay. Under the proposed arrangement, all those aged 18 and over would be entitled to the same minimum wage.
The DBT has yet to confirm the timeline for this proposed change.