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How much more per year people are set to earn as minimum wage and living wage increase announced
Published 19:42 26 Nov 2025 GMT
Updated 19:42 26 Nov 2025 GMT
Homenews
Millions are set for a pay rise
The national minimum wage and national living wage are set to go, Keir Starmer announced last night (25 Nov).
The prime minister confirmed the news on the eve of the Autumn Budget, which was announced today by the OBR...no sorry, by Rachel Reeves.
Taking to X last night, Starmer said the increase will come next April and will help fight the cost of living crisis.
The post read: "From April, we're raising the National Living Wage and National Minimum Wage.
"The cost of living is the number one issue people are facing, with too many struggling to make ends meet.
"I am determined to tackle it."
The living wage, for those 21 and over, will increase from £12.21 per hour to £12.71 per hour.
For ages 18–20, the rate rises to £10.85 from £10.00.
While for those aged 16 and 17 (as well as apprentices), the rate rises to £8.00 from £7.55.
With this in mind, we've worked out how much more people are set to earn after these increases.
These figures are of course dependant on the age of the person and how many hours they work per week.
We've calculated these numbers for people working full time on either 37.5, 40, or the maximum 48 hours per week for all applicable age brackets.
| Age | Hours/week | Hourly wage (before) | Hourly wage (after) | Difference per hour | Annual full-time gross pay before | Annual gross pay after | Approx. extra per year |
|---|---|---|---|---|---|---|---|
| 21+ | 37.5 | £12.21 | £12.71 | +£0.50 | £23,809.50 | £24,784.50 | £975 |
| 21+ | 40 | £12.21 | £12.71 | +£0.50 | £25,396.80 | £26,436.80 | £1,040 |
| 21+ | 48 | £12.21 | £12.71 | +£0.50 | £30,476.16 | £31,724.16 | £1,248 |
| 18-20 | 37.5 | £10.00 | £10.85 | +£0.85 | £19,500 | £21,157.50 | £1,657.50 |
| 18-20 | 40 | £10.00 | £10.85 | +£0.85 | £20,800 | £22,568 | £1,768 |
| 18-20 | 48 | £10.00 | £10.85 | +£0.85 | £24,960 | £27,081.60 | £2,121.60 |
| 16-18 | 37.5 | £7.55 | £8.00 | +£0.45 | £14,722.50 | £15,600 | £877.50 |
| 16-18 | 40 | £7.55 | £8.00 | +£0.45 | £15,704 | £16,640 | £936 |
The data shows that 18-20 year olds are on minimum wage are the biggest winners with the highest increase of £0.85 per hour.
This means a worker between the aged of 18 and 20 could end up taking home an extra £2,121,60 per year if they work the maximum number of yearly legal hours.
This wasn't the only change confirmed in the chancellor's Budget, which included scrapping the two-child benefit cap, tax thresholds being frozen, and the introduction of a 'mansion tax'.
Other notable mentions were the freezing of rail fares for the first time in 30 years, which we already knew about, prescription charges being frozen at £9.90, and the extension of the £3 single fare bus cap.
Meanwhile, the tax-free allowance in Cash ISAs was dropped from £20,000 to £12,000 and a £2,000 per year tax-free cap was put on the salary sacrifice pension scheme.
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