Minimum wage expected to rise 6% in 2025

The minimum wage is expected to increase by more than 6% next year, according to reports.

Chancellor Rachel Reeves will announce the rise, which is above inflation, in her first Autumn Statement tomorrow when she sets out the government’s tax and spending plans.

According to The Times, the National Living Wage of £11.44 an hour for over-21s will rise to more than £12.12 from April 2025.

It is higher than the 5.8% increase predicted by UKHospitality after its discussions with government.

Younger workers on lower pay bands will get an even bigger increase as part of government plans to eventually create a single adult rate.

UKHospitality has said it expects to see a 10%-15% increase in the minimum 18-to-20-year-old rate, currently at £8.60 per hour, over the next three to five years.

More than one million workers are set to benefit from the plans. However, businesses have been warned the rise is expected to come alongside an increase in employer national insurance contributions.

The Autumn Statement will be announced from around 12:30pm on Wednesday.

Read more: What is UKHospitality asking for in the Autumn Statement?