Millions of UK workers will see their pay increase following UK Budget

Millions of workers across the country will see a significant pay rise from April 2025. Chancellor Rachel Reeves has confirmed the increase in her first Budget today (October 30).

It's the first Budget from a Labour government for more than 14 years. Ms Reeves, Britain's first female Chancellor of the Exchequer, says she is determined to put 'more pounds in people's pockets'.

And one of the key ways she intends to do so is by raising the national minimum wage. Ms Reeves confirmed an increase of 6.7 per cent for the next financial year.

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That means the national minimum wage will rise to £12.21 an hour from April 2025. Meanwhile, the youngest workers are set for a huge pay increase from April 2025.

Ms Reeves confirmed plans to equalise the rate of minimum pay for all adults over time. She told the Commons this would start with a 16.3 per cent increase next year - meaning workers aged 18 to 20 would receive £10 an hour.

"I know that for working people up and down our country, family finances are stretched," said Ms Reeves. "And pay cheques don't got as far as they once did.

"So today I am taking steps to support people with the cost of living. It was the Labour government that introduced the national minimum wage in 1999. It had a transformative impact on the lives of working people.

"As promised in our manifesto, we asked the Low Pay Commission to take account of the cost of living for the first time. I can confirm that we will accept the Low Pay Commission recommendation to increase the national living wage by 6.7 per cent to £12.21 an hour, worth up to £1,400 a year for a full-time worker.

"And for the first time, we will move towards a single adult rate phased in over time, by initially increasing the national minimum wage for 18 to 20-year-olds by 16.3 per cent as recommended by the Low Pay Commission, taking it to £10 an hour. A Labour policy to protect working people, being delivered by a Labour government once again."