The Treasury has announced an 18% increase to the minimum hourly wage for apprentices, which will rise from £6.40 to £7.55 starting in April 2025. This increase, set out by Chancellor Rachel Reeves ahead of today’s autumn budget, aims to provide financial relief to apprentices.
In addition to the apprentice wage hike, the minimum wage for 18-20-year-olds will see a record increase of £1.40, bringing the hourly rate to £10. Reeves noted this is part of Labour’s commitment to establishing a "genuine living wage" for working individuals. Deputy Prime Minister Angela Rayner added that these changes are designed to help millions of low-wage earners afford essential costs, with the boost for 18–20-year-olds being the largest on record.
The Low Pay Commission (LPC), however, recently recommended linking the apprentice wage to the national minimum wage for over-18s during the first year of apprenticeships, a suggestion that wasn’t adopted. Employers are currently required to pay at least the apprentice minimum wage for workers aged 16-18 or 19+ in their first apprenticeship year. Beyond this, older apprentices qualify for the standard minimum or living wage based on age.
Alongside the apprentice wage increase, the National Living Wage for those 21 and older will rise by 6.7%, reaching £12.21 per hour, marking significant strides in government efforts to support lower-income workers. These adjustments are expected to directly benefit over 3 million workers through the National Living Wage increase, nearly 200,000 18–20-year-olds, and approximately 130,000 apprentices and workers under 18.
New Minimum Wage Rates from April 1, 2025
| Category | New Rate | Annual Increase | Percentage Increase |
|---|---|---|---|
| National Living Wage (21+) | £12.21 | £0.77 | 6.7% |
| 18–20-Year-Old National Minimum Wage | £10.00 | £1.40 | 16% |
| 16–17-Year-Old National Minimum Wage | £7.55 | £1.15 | 18% |
| Apprentice Rate | £7.55 | £1.15 | 18% |
Labour’s first budget in 15 years is set to be delivered 30th October, with these wage adjustments being central to the government’s efforts to improve living standards across age groups.
Source: FE Week
