

Phased approach: extending National Living Wage to all adults
Holly Coope

2
Minute Read
31 Jul 2024

Phased approach: extending National Living Wage to all adults
Holly Coope

2
Minute Read
31 Jul 2024
The UK government has announced plans to gradually extend the National Living Wage (NLW) to all adults (18+), phasing it in year by year. They also want to make sure the NLW keeps up with at least two-thirds of the median earnings for those 21 and over, which is considered a recognised measure of low hourly pay.
In a recent statement, the Business Secretary Jonathon Reynolds explained that the government has asked the Low Pay Commission (LPC) to consider the cost of living in their recommendations, along with the potential effects on businesses and the economy.
For 2025, the government has opted for a “one-year holding position”, meaning the NLW rate won’t change dramatically, and will likely align with previous plans.
Reynolds said that “this should continue to narrow the gap with the national living wage, taking steps year by year in order to achieve a single adult rate”. The policy change is reserved for young workers, moving towards a single rate for all adults by putting the rate for 18-20-year-olds on a path to converge with the adult rate.
The current expectation is for the NLW to be around £11.89 per hour from April 2025, an increase of 3.9% on the current NLW of £11.44. There’s also a push to narrow the pay gap for younger workers, the National Minimum Wage (NMW) for people aged 18-20, which is currently £8.60, would need to increase by one-third to match the current NLW.
The ‘real’ Living Wage, the voluntary, independently set rate which accounts for the cost of living, is currently £12 per hour or £13.15 per hour in London.
The LPC will make its recommendations in October for the NLW rate of 2025, and of course we will keep you updated with any further commentary in the meantime.
If you require any guidance or assistance on this matter, the CG Employment Team are on hand to assist.
Image Source: suriyawut via Vecteezy.com






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