Chancellor announces HUGE pay increase for Britain's youngest low-paid workers

Young workers are in line for a huge pay increase from April 2025. Chancellor Rachel Reeves is announcing her first Budget to the House of Commons this afternoon (October 30).

It's the first to be delivered by a Labour chancellor in more than 14 years. Ms Reeves delivered good news for low-paid workers, with an increase in the national minimum wage of 6.7 per cent for the next financial year, to £12.21 an hour.

But it was another minimum wage announcement that spelled good news for workers aged 18 to 20. The chancellor confirmed plans to equalise the minimum wage for adults over time, in a phased process.

READ MORE: Budget 2024 LIVE as Rachel Reeves announces changes to tax and public spending

And that starts with a huge 16.3 per cent increase to £10 an hour. Ms Reeves said: "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."

To cheers in the Commons, she added: "A Labour policy to protect working people, being delivered by a Labour government once again." The changes will take effect in the new financial year, from April 2025.

The 6.7% increase – which is worth £1,400 a year for an eligible full-time worker – has been described by the Government as a significant step towards delivering the manifesto commitment to make sure the minimum wage is a genuine living wage.

Deputy Prime Minister Angela Rayner said: "A proper day’s work deserves a proper day’s pay. Our changes will see a pay boost that will help millions of lower earners to cover the essentials as well as providing the biggest increase for 18–20-year-olds on record."

The minimum hourly wage for an apprentice is also boosted next year, with an 18-year-old apprentice in an industry like construction seeing their minimum hourly pay increase by 18.0%, a pay bump from £6.40 to £7.55 an hour.

These increases will mean 3.5 million workers will receive a pay rise this year in total. They confirm the Low Pay Commission’s recommendations, whose advisory remit was overhauled by ministers in July to consider the cost of living.