DWP Financial Boost £1,400 a year from April 01, 2025: Welsh workers set for pay rise with new National Minimum Wage

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DWP Financial Boost £1,400 a year from April 01, 2025 Welsh workers set for pay rise with new National Minimum Wage

DWP Financial Boost £1,400 a year from April 01, 2025: As part of the UK Government’s Plan for Change, around 160,000 of the lowest-paid workers in Wales will receive a pay boost starting today, 1 April 2025. The new National Minimum Wage and National Living Wage rates are now active, helping workers across Wales from Cardiff to Colwyn Bay.

This change gives full-time workers on the National Living Wage an extra £1,400 a year, providing more financial security and improving living standards for thousands of families.

New Wage Rates from 1 April 2025

Here are the updated rates for all age groups and apprentices:

  • National Living Wage (21+): £12.21/hour (up from £11.44)
  • 18–20-year-olds: £10.00/hour (up from £8.60)
  • Under 18s: £7.55/hour (up from £6.40)
  • Apprentices: £7.55/hour (up from £6.40)
  • Accommodation Offset: £10.66/day

These new rates also begin the shift towards removing age-based wage bands, aiming to make pay fairer across all age groups.

Supporting Workers and Growing the Economy

This pay rise isn’t just about helping individuals—it’s also about strengthening local economies. With more money in their pockets, workers are expected to spend more in local shops and businesses, which will support high streets and drive growth across Wales.

Business Secretary Jonathan Reynolds said:

“We promised to make low pay a thing of the past. By ensuring everyone gets fair pay, we’re giving working people financial stability and helping businesses grow.”

Employment Rights Minister Justin Madders added:

“From Cardiff to Colwyn Bay, we’re raising the floor for workers. Our Plan to Make Work Pay is making a real difference in people’s lives.”

Pay Increase Based on Cost of Living

For the first time, the Low Pay Commission was told to include inflation and cost of living when setting wage rates. This means the new wages reflect what people need to live well in today’s economy.

In addition to the new rates, the Employment Rights Bill is expected to deliver up to £600 more per year for some of the lowest-paid workers.

Wales Secretary Jo Stevens on the Impact

Secretary of State for Wales, Jo Stevens, said:

“Today, thousands of workers in Wales will get a pay rise worth £1,400 a year. This is real support for families, helping with household bills and boosting living standards.”

The April 2025 wage increase is a big step toward fairer pay and economic growth in Wales. With more money in their pockets, workers will be better off, and local businesses will benefit too. If you’re a worker in Wales, make sure your payslip reflects the new rates. And if you’re not being paid fairly, you can raise it with your employer or report it confidentially to HMRC.

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FAQ’s

How much is the new National Living Wage in Wales from April 2025?

The National Living Wage for workers aged 21 and over in Wales is now £12.21 per hour, up from £11.44.

How many workers in Wales will benefit from the wage rise?

Around 160,000 workers in Wales are expected to benefit from the new National Minimum and Living Wage rates.

How much extra will full-time workers earn each year?

Eligible full-time workers on the National Living Wage will see a pay increase of up to £1,400 per year.

Will apprentices and younger workers also get a pay rise?

Yes, apprentices and workers under 21 will also receive record increases. Apprentices now earn £7.55 per hour.

What should I do if I’m not being paid the new rates?

You should speak to your employer. If the issue is not resolved, you can report it confidentially to HMRC or contact Acas at 0300 123 1122.

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