Small Business Accountants

How Many of Us Are Due A Pay Rise in April 2025?

From April 2025 the National Living Wage rises 6.7% to £12.21 per hour for workers aged 21 and over. Using ONS 2024 median wage data, GoForma estimates that around 2.6 million full-time UK workers earn below the new minimum, representing 13% of the full-time workforce. The North East has the highest proportion of affected workers at 18%.

How Many of Us Are Due A Pay Rise in April 2025? - GoForma Tax Guides | UK Accountants & Tax Advisors
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Key takeaways

  • The National Living Wage rises to £12.21 per hour from April 2025, a 6.7% increase that applies to all workers aged 21 and over across the UK.
  • Around 2,638,740 full-time workers, roughly 13% of the UK total, currently earn below the new minimum wage and are due a pay rise.
  • The North East of England has the highest share of affected workers at 18%, while London has the lowest at 9% reflecting higher average wages in the capital.
  • Employers also face a rise in employer National Insurance contributions to 15% from April 2025, with the secondary threshold dropping to £5,000 per employee.
  • National Minimum Wage rates for younger workers also increase in April 2025, rising to £10.00 for ages 18 to 20 and £7.55 for under-18s and apprentices.

With Rachel Reeves announcing an 6.7% rise to minimum wage in April 2025, bringing minimum wage up to £12.21 we looked at Office of National Statistics’ 2024 median wage data to find out how many people are due a pay rise in April 2025.

We found that:

  • 2,638,740 full time UK workers are due a pay rise in April 2025
  • Thats 13% of all UK full time workers
  • The North East of England has the highest percentage of full time workers needing a pay rise, at 18%

Overview of UK Regions

The table below shows the percentage and number of full time workers who are due a pay rise when minimum wage increases in April 2025.

UK Regional Analysis

North East of England

The table below shows the number of people in the North East of England who need a pay rise when minimum wage increases in April 2025

North West

The table below shows the number of people in the North West of England who need a pay rise when the minimum wage increases in April 2025.

Yorkshire and the Humber

The table below shows the number of people in Yorkshire and the Humber who need a pay rise when the minimum wage increases in April 2025.

West Midlands

The table below shows the number of people in the West Midlands who need a pay rise when the minimum wage increases in April 2025.

East Midlands

The table below shows the number of people in the East Midlands who are due a pay rise in April 2025.

East of England

The table below shows the number of people in the East of England who are due a pay rise in April 2025.

South East England

The table below shows the number of people in South East England who are due a pay rise in April 2025.

London

The table below shows the number of people in London who are due a pay rise in April 2025.

South West England

The table below shows the number of people in South West England who are due a pay rise in April 2025.

Scotland

The table below shows the number of people in Scotland who are due a pay rise in April 2024.

Wales

The table below shows the number of people in Wales who are due a pay rise in April 2025.

Northern Ireland

The table below shows the number of people in Northern Ireland who are due a pay rise in April 2025.

Methodology

To find out the number of people who are due a pay rise in April 2025, GoForma looked at the Office of National Statistics average weekly earnings for October 2024.

The report gave us the percentiles of gross weekly earnings for full time workers by region, and from this we worked out the percentage of full time workers in each region who were earning less than the 2025 minimum wage of £12.21.

Since the £12.21 minimum wage only applies to people over the age of 21, we multiplied our percentages by 0.95 to account for the Office of National Statistics findings that 5% of the workforce is under 21.

Our findings assume that “full time” equates to 40 hours per week.

Frequently asked questions

What is the National Living Wage from April 2025?

The National Living Wage increases to £12.21 per hour from 1 April 2025, up from £11.44. This rate applies to all workers aged 21 and over. The rise represents a 6.7% increase and was confirmed as part of the government response to the Low Pay Commission recommendations. Employers must update payroll to reflect the new rate from the first pay reference period starting on or after 1 April 2025.

How many UK workers are affected by the April 2025 minimum wage rise?

GoForma estimates that around 2,638,740 full-time workers across the UK currently earn below the new £12.21 per hour threshold, based on ONS 2024 median wage data. This figure represents approximately 13% of all full-time employees. The analysis adjusts for the fact that workers under 21 qualify for lower National Minimum Wage rates rather than the full National Living Wage.

Which UK region has the most workers due a pay rise in April 2025?

The North West has the highest absolute number of affected workers at around 325,500, while the North East of England has the highest percentage at 18% of its full-time workforce. London has the lowest proportion at 9%, reflecting higher average wages in the capital. Scotland also sits relatively low at 11%, close to the South East figure of 11%.

What are the National Minimum Wage rates for under-21s from April 2025?

From April 2025 the National Minimum Wage for workers aged 18 to 20 rises to £10.00 per hour, up from £8.60. The rate for under-18s and apprentices increases to £7.55 per hour, up from £6.40. These rates apply to the first full pay reference period starting on or after 1 April 2025. Employers who fail to pay the correct rate can face penalties of up to 200% of the arrears owed.

How does the employer NIC increase in April 2025 affect wage costs?

From April 2025 employer National Insurance contributions rise from 13.8% to 15%, while the secondary threshold drops from £9,100 to £5,000 per employee. This means employers pay NIC on a larger portion of each worker's earnings at a higher rate. The Employment Allowance increases to £10,500 to offset some of the additional cost for eligible small businesses.

Does the National Living Wage apply to self-employed workers?

No. The National Living Wage and National Minimum Wage only apply to employees and workers, not to self-employed individuals who set their own rates. However, businesses must ensure that anyone classified as a worker under employment law receives at least the correct minimum wage. HMRC can reclassify self-employed contractors as workers if the working arrangement meets the criteria for employment.

How was the data in this article calculated?

GoForma used the Office for National Statistics average weekly earnings data from October 2024, which provides gross weekly earnings percentiles for full-time workers by UK region. The analysis identified the proportion of workers earning below £12.21 per hour, assuming a 40-hour working week. A 5% adjustment was applied to exclude workers under 21 who qualify for lower minimum wage rates.

When must employers start paying the new minimum wage rates?

Employers must pay the new National Living Wage and National Minimum Wage rates from the first pay reference period that starts on or after 1 April 2025. A pay reference period is typically a week or a month depending on how often the worker is paid. Failing to increase pay on time is a criminal offence and HMRC can issue a notice of underpayment requiring the employer to pay arrears plus a financial penalty.

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