The government has recently announced the rates of the National Living Wage (NLW) and National Minimum Wage (NMW) which will come into force on 1 April 2025, following recommendations from the Low Pay Commission. The new rates will be as follows:

• NLW - Age 21 and over: £12.21 per hour (up 6.7% from £11.44)
• NMW - Age 18 to 20: £10 per hour (up 16% from £8.60)
• NMW - Age 16 to 17 and apprentices: £7.55 (up 18% from £6.40)

The significant increase in the rate for those aged 18 to 20, which is the largest increase on record, narrows the gap between the age bands. This is a move towards the government’s stated plan of removing the age bands and creating a single adult rate of NLW for those aged 18 and above.