The National Minimum Wage rate for 18 to 20-year-olds will increase by 8.5% to £10.85 an hour, narrowing the gap with the National Living Wage. The National Minimum Wage for 16 to 17-year-olds and those on apprenticeships will increase by 6% to £8 an hour. “These additional costs make action at the Budget to reduce hospitality’s tax burden even more important, especially if businesses are expected to sustain this level of annual wage increase. “It will still fall short of the voluntary real living wage which is the only wage rate based solely on the cost of living.”The real living wage is currently £13.45 an hour in the UK and £14.80 in London. “However, every above-inflation wage increase leads to higher business costs, lower investment and fewer opportunities for individuals.

Source: The Times November 26, 2025 17:27 UTC