National living wage may rise to £12.10 an hour

Low-income workers could be in line for a pay rise after the Low Pay Commission (LPC) recommended a 5.8% increase in the national living wage.

Following the general election in July, the new Labour government asked the LPC to recommend a new rate that took the cost of living into account and didn’t fall below two-thirds of average hourly earnings.

The body has now suggested that the national living wage, which applies to workers aged 21 or over, be raised from £11.44 an hour to £12.10 an hour from April 2025.

According to the LPC, this reflects the cost of living and inflation forecasts up to March 2026, while the requirement to keep the rate above two-thirds of average hourly earnings will act as a “floor” to its recommendations in the future.

"We are changing the rules to put more money in working people’s pockets,” a Department for Business and Trade spokesperson said.

We believe a hard day's work deserves a fair day's pay and that's exactly what our Make Work Pay plans will do working in conjunction with business."

The LPC added: “Our aim is to raise the rate as high as possible without damaging the employment prospects of the groups affected.”

Details of an increase in the National living wage are expected to be confirmed by chancellor of the exchequer Rachel Reeves in her first autumn statement on 30 October.

National living wage age threshold to be lowered to 18

Increasing the National living wage rate is just one of several proposed changes the government is seeking to introduce to benefit workers on low incomes.

Shortly after the general election, deputy prime minister Angela Rayner and business secretary Jonathan Reynolds told the LPC they are also committed to extending the national living wage to all adults, as they believe existing age bands are “discriminatory”.

This means that the age threshold for receiving the national living wage will be lowered to 18 and that the rate for 18 to 20 year olds (currently £8.60) will be scrapped.

However, this is expected to be a gradual process, as the government has asked the LPC to “take steps year by year in order to achieve a single adult rate”.