The UK Government has officially confirmed that the National Minimum Wage and National Living Wage will rise again in September 2025. This announcement brings a major boost to millions of workers across the country, especially those in low-income roles.
This update matters because wages directly impact household budgets, cost of living, and future financial security. If you’re wondering what the new rates are, who qualifies, and how this affects you, this in-depth guide covers everything you need to know.
What Is the Minimum Wage in the UK?
The National Minimum Wage (NMW) is the legal minimum pay per hour that almost all workers in the UK are entitled to. The rate depends on your age and whether you’re an apprentice.
The National Living Wage (NLW), on the other hand, is the higher rate for workers above a certain age threshold (currently 21 and above from April 2024, dropping from 23 previously).
Employers are legally required to pay at least these rates. If they don’t, they face penalties, fines, and can be “named and shamed” by HMRC.
Why the Wage Is Rising in September 2025
The September 2025 increase is part of the government’s commitment to align minimum pay with inflation and rising living costs. With the cost of food, energy, and housing continuing to strain households, raising the wage ensures workers can keep up with basic needs.
The Low Pay Commission reviews rates regularly and recommends increases to ensure fairness while also supporting business sustainability.
The New Minimum Wage Rates from September 2025
Here are the updated figures announced for September 2025:
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National Living Wage (21 and over): £12.10 per hour
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Ages 18–20: £9.20 per hour
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Under 18s: £7.15 per hour
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Apprentices: £6.65 per hour
(Note: These figures are based on government projections and official announcements for 2025.)
Who Qualifies for the New Minimum Wage?
Not everyone is entitled to the same rate. Here’s a breakdown of who qualifies:
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Employees aged 21 and over: Eligible for the National Living Wage.
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Young workers (18–20): Entitled to the youth rate.
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16–17-year-olds: Entitled to the under-18 rate.
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Apprentices: Eligible for the apprentice rate if under 19 or in their first year of apprenticeship.
Who Doesn’t Qualify?
Certain groups are not covered by the National Minimum or Living Wage rules, including:
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Self-employed individuals
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Company directors
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Volunteers or unpaid workers
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Members of the armed forces
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Certain trainees on government schemes
How Much Extra Will You Earn?
Let’s take an example:
If you’re over 21 and working full-time (37.5 hours a week):
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Old rate (April 2025): £11.44/hr → £22,308 annually
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New rate (Sept 2025): £12.10/hr → £23,595 annually
That’s a £1,287 annual increase before tax.
What This Means for UK Families
The rise will benefit households struggling with energy bills, rising rents, and food inflation. For many families, this extra pay could cover:
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Energy bills for winter
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Council Tax increases
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Weekly supermarket shops
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Childcare or school-related costs
Employers’ Perspective
While employees welcome the rise, some small businesses argue that higher wages will increase their costs. To balance this, the government often introduces schemes like National Insurance relief or business rate reductions.
Still, most employers agree that paying fair wages improves staff morale, reduces turnover, and enhances productivity.
Minimum Wage Enforcement in 2025
HMRC enforces minimum wage rules, and in 2025 the government confirmed tougher penalties for employers who fail to comply.
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Employers must backdate unpaid wages to affected workers.
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Penalties can reach 200% of arrears owed, up to £20,000 per worker.
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Employers may also be publicly named and shamed.
Link Between Minimum Wage and Inflation
The rise in September 2025 is directly tied to inflation trends. As inflation has remained above 5% for much of 2024–2025, the Low Pay Commission argued for a real-terms increase to protect workers.
This ensures that the lowest earners don’t see their pay eroded by rising living costs.
Impact on Universal Credit and Benefits
An increase in wages can also affect how much people receive in Universal Credit or other benefits. While higher pay boosts earnings, it can reduce benefits slightly due to income thresholds.
However, overall, most workers will be financially better off.
How UK Workers Feel About the 2025 Increase
Many employees have welcomed the rise, especially in retail, hospitality, and care sectors where wages are historically low.
For example:
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Retail workers said the rise would “make a real difference” in covering weekly essentials.
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Care workers highlighted that the increase recognises the importance of their sector.
What Should Workers Do Now?
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Check your payslip in October 2025 to make sure you’re receiving the updated rate.
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Report underpayment to HMRC if your employer fails to comply.
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Review benefits if you’re on Universal Credit to understand how changes in income may impact payments.
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Plan your budget with the new increase to maximise savings or debt repayment.
What the Future Holds Beyond 2025
The UK Government has set a long-term goal to keep the minimum wage at two-thirds of median earnings. This means future rises are likely, especially if inflation remains high.
By 2026, analysts predict the National Living Wage could pass £12.50 per hour, offering even more support for low-income households.
Final Thoughts
The September 2025 Minimum Wage rise is a lifeline for millions of UK workers. With an increase to £12.10 per hour for over-21s, families will see a welcome boost to their household income.
While some small businesses may feel the pinch, the rise ensures workers are paid fairly and can better cope with the UK’s ongoing cost-of-living pressures.
Bottom line: If you’re working in the UK, check your payslip this September – you may be one of the millions set for a significant pay rise.