The UK government has officially confirmed an increase in the National Minimum Wage and National Living Wage, effective 1 July 2025. This wage hike is part of the government’s broader strategy to ensure that workers, especially in lower-income brackets, are better able to cope with inflation and rising living costs. The increase will benefit millions of workers across sectors such as retail, hospitality, manufacturing, and care services.
The National Living Wage, which applies to workers aged 21 and over, will rise again in July following the record hikes introduced in April. This mid-year adjustment reflects the government’s response to economic trends and recommendations from the Low Pay Commission.
Who Benefits from the New Minimum Wage Increase?
The updated wage levels apply to all eligible workers across the UK, with rates depending on the worker’s age and employment status. Employers are required by law to update pay structures starting 1 July 2025, ensuring that all eligible employees receive at least the statutory minimum.
Young workers, apprentices, and part-time employees are all included under the new wage structure. Those working under zero-hour contracts or part-time jobs must also receive the updated rate based on their age bracket.
UK Minimum Wage Rates Effective July 2025
| Age Group / Category | Current Rate (April 2025) | New Rate (July 2025) |
|---|---|---|
| Age 21 and over (Living Wage) | £11.44 | £11.76 |
| Age 18 to 20 | £8.60 | £8.90 |
| Under 18 | £6.40 | £6.70 |
| Apprentices | £6.40 | £6.70 |
These increases represent a 2.5% to 3% uplift across most brackets and are intended to narrow wage gaps, especially for younger and entry-level workers. The new rates are based on recommendations from the Low Pay Commission and analysis of employment market data from the Office for National Statistics.
When the Pay Increase Takes Effect
The new minimum wage takes effect starting 1 July 2025. Workers should see the updated pay rates reflected in their first full pay period following this date. Employers who fail to comply may face penalties, including fines and public naming by HMRC.
Employees are advised to check their payslips from July onwards and raise concerns with their HR department or report to ACAS or HMRC if they suspect underpayment.
Broader Impact of the Mid-Year Wage Adjustment
This adjustment marks a continued effort to transition the UK towards a “high-wage, high-skill economy,” especially as inflation eases. With the cost of rent, transportation, and groceries still high in many parts of the UK, the July 2025 minimum wage increase is expected to bring noticeable relief to households relying on low to moderate earnings.