The UK Government has announced a significant increase in both the National Living Wage and the National Minimum Wage, a move aimed at boosting the pay packages of around 2.7 million workers across the country.
Chancellor of the Exchequer Rachel Reeves confirmed on Tuesday 25 November 2025 that the Government has accepted the Low Pay Commission (LPC) recommendations to increase rates. The announcement is part of a broader effort to address the cost of living crisis, which remains a top concern for the administration.
In a video message recorded during a visit to Primark to speak to staff, Reeves said the changes will come into effect in April. Under the new measures, a full-time worker on the National Living Wage will see an annual pay rise of £900. Meanwhile, younger workers who receive the national minimum wage and work full-time will receive a £1,500 rise.
The Chancellor emphasized that the current economic situation has not sufficiently benefited those with lower incomes. He noted that too many people are still struggling to make ends meet and stated that the government is determined to ensure that low-income people are adequately rewarded for their hard work.
“These changes mean that from April, the national minimum wage and national living wage will increase the pay packages of around 2.7 million workers.
“For a full-time worker on the National Living Wage, that means a pay rise of £900 a year.
“And for someone earning the national minimum wage and working full time, it will mean an increase of £1,500.”
This latest tax intervention follows other government actions aimed at easing financial pressure on households, including freezing rail fares and prescription drug rates, as well as enhancing the Triple Lock for pensioners.
Addressing the balance between higher wages and economic stability, Reeves outlined measures aimed at supporting businesses and protecting jobs. He highlighted that the government has secured trade deals with the United States, the European Union and India, along with commitments to cap corporate tax and reform business rates to help big businesses.
The pay rise announcement serves as a prelude to the Chancellor’s budget delivery later this week, where she is expected to present a broader mandate for change aimed at reducing the cost of living for all citizens.