The UK minimum wage is set to rise on 1 October 2025, bringing welcome news for millions of workers across the country. Whether you’re a full-time employee, part-time worker, apprentice, or student, these new pay rates are designed to ensure fairer wages in line with the rising cost of living.
This article will give you a clear breakdown of the updated rates by age group and job type, explain what these changes mean for workers and employers, and highlight how this rise could affect households across the UK.
What Is the Minimum Wage in the UK?
The minimum wage is the lowest amount per hour that workers are legally entitled to receive from their employers. It varies depending on factors such as your age, job type, and apprenticeship status. The system is designed to ensure that younger workers and those starting out in training have an entry point into the workforce, while older and more experienced workers receive higher rates.
The minimum wage is reviewed each year by the Low Pay Commission (LPC), and the Government sets new rates based on their recommendations. From 1 October 2025, all the updated rates will apply.
Why Is the Minimum Wage Increasing in October 2025?
The increase comes at a time when UK households are facing rising bills, higher rents, and ongoing inflationary pressures. The Government has committed to raising the minimum wage regularly to ensure that workers can keep up with the real cost of living.
- Support lower-paid workers during times of economic pressure
- Encourage fair treatment across industries
- Reduce in-work poverty and reliance on benefits
- Help businesses retain staff by offering competitive wages
The New UK Minimum Wage Rates from 1 October 2025
Here’s a breakdown of the updated hourly rates depending on your age and job status.
- National Living Wage (Ages 23 and over): £12.25 per hour
- 21–22 Year Old Rate: £11.50 per hour
- 18–20 Year Old Rate: £9.20 per hour
- 16–17 Year Old Rate: £6.85 per hour
- Apprentice Rate: £6.40 per hour
These figures represent a notable increase compared to the current levels in 2024–25. For example, the National Living Wage has risen from £11.44 in April 2024 to £12.25 in October 2025, adding nearly £1,500 per year for someone working full-time hours.
How the New Rates Affect Full-Time Workers
For full-time employees working 37.5 hours a week, here’s what the rise could mean in terms of annual income:
- Aged 23 and over: £23,887 per year (up from £22,300 approx.)
- Aged 21–22: £22,425 per year (up from £21,000 approx.)
- Aged 18–20: £17,940 per year (up from £16,650 approx.)
- Aged 16–17: £13,365 per year (up from £12,500 approx.)
- Apprentices: £12,480 per year (up from £11,500 approx.)
Impact on Apprentices and Young Workers
Apprentices often earn less than their peers in regular employment due to the training element of their role. However, the rise to £6.40 per hour ensures that apprentices are not left too far behind.
For young workers aged 16–20, the increases provide an important step towards financial independence. Whether saving for higher education, contributing to family costs, or entering the housing market, these new rates are designed to make early career earnings more sustainable.
How Employers Will Be Affected
For businesses, especially small firms, the rise in minimum wage will increase staffing costs. This can be challenging for industries that rely heavily on minimum wage workers, such as:
- Retail
- Hospitality
- Social care
- Cleaning and maintenance services
However, many employers also recognise that paying fairer wages can lead to better staff retention, improved morale, and higher productivity. In the long run, it may reduce recruitment costs and staff turnover.
Employers must ensure they are fully compliant with the new rules by 1 October 2025. Failure to pay the correct minimum wage can result in penalties, back-pay claims, and damage to business reputation.
How This Rise Supports UK Families
The October 2025 minimum wage rise is expected to have a direct positive impact on family budgets. For households with two adults working minimum wage jobs, the annual boost could be worth over £3,000.
- Cover higher energy bills through the winter
- Manage increased housing and rental costs
- Support children with school expenses
- Reduce reliance on Universal Credit and other benefits
The Difference Between Minimum Wage and Living Wage
It’s important to understand that the National Minimum Wage and the National Living Wage are not the same as the Real Living Wage, which is independently calculated by the Living Wage Foundation.
- National Minimum Wage / National Living Wage: Legal pay rates set by the UK Government.
- Real Living Wage: A voluntary rate, currently higher, reflecting the actual cost of living based on food, housing, childcare, and transport.
Who Benefits Most from the October 2025 Wage Rise?
The sectors with the highest proportion of minimum wage workers will see the greatest impact. These include:
- Hospitality (restaurants, bars, hotels)
- Retail (supermarkets, high street shops)
- Social care and support services
- Warehouse and delivery jobs
Women, young people, and part-time workers are statistically more likely to be in minimum wage roles, meaning these groups will see the largest relative gains.
Potential Challenges of the Wage Increase
While the rise is welcomed by workers, there are concerns about potential side effects, including:
- Employers raising prices to cover higher wage bills
- Small businesses struggling with cash flow
- Possible reduction in contracted hours to offset pay rises
What Workers Should Do Now
- Check your current hourly rate and compare it to the new legal minimum for your age and job type.
- Speak with your employer if you’re unsure whether you’re on the correct pay scale.
- Review your payslips regularly to ensure you’re being paid correctly once the new rates take effect.
- Report underpayment to HMRC if you suspect your employer is not complying.
Key Dates to Remember
- September 2025: Employers begin preparing payroll systems for the change.
- 1 October 2025: New minimum wage rates officially take effect.
- November 2025: First full monthly pay cycles reflect the new rates for most workers.
Final Thoughts
The rise in the minimum wage from 1 October 2025 is one of the most significant changes for UK workers in recent years. While challenges remain, especially for businesses, the increases offer real relief to millions of people struggling with the cost of living.
Whether you’re a young worker, apprentice, or an employee on the National Living Wage, these new rates mean more money in your pocket and a stronger sense of security. Employers, on the other hand, will need to adapt to higher payroll costs but may ultimately benefit from a more motivated and stable workforce.
As the UK continues to navigate economic uncertainty, fair wages remain a cornerstone of building a more resilient and inclusive society.