The minimum wage for those aged 21 years and over will rise by 6.7% to £12.21 – with pay for those aged 18 to 20 set to go up by 16.3% to £10 an hour.
Chancellor Rachel Reeves has confirmed the increases ahead of Wednesday’s budget, and they will take effect from April 2025.
The government says a full-time worker aged 21 and older will earn an extra £1,400 a year with the increase to what is known as the national living wage.
Minimum wage workers – those between 18 and 20 – are getting a greater proportional increase as part of government efforts to create in the future a single minimum rate for all adults instead of the current tiered system.
Their pay bump from £8.60 per hour to a flat £10 means a full-time worker will get an extra £2,500 in a year, the government says.
Ms Reeves said: “This government promised a genuine living wage for working people. This pay boost for millions of workers is a significant step towards delivering on that promise.”
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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-year-olds on record.”
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The announcement of the increases, which are based on recommendations from the Low Pay Commission, comes ahead of a budget in which the government says it will ensure “working people don’t face higher taxes in their payslips”.
The Low Pay Commission is an independent body that advises the government, although its remit is set by the government of the day.
Image: Chancellor of the Exchequer Rachel Reeves during a visit to St George’s Hospital, Tooting, London, ahead of the government’s first budget. Pic: PA
The jump in the base wage rates and the expected increase to employers’ national insurance contributions in the budget have raised concerns about how businesses will be impacted with the new demands on their wage bills.
Many expect the national insurance rise to filter through to less take home pay for workers.
John Foster, chief policy and campaigns officer at the Confederation of British Industries, said the pressure of rising minimum wage rates would “make it increasingly difficult for firms to find the headroom to invest in the tech and innovation needed to boost productivity and deliver sustainable increases in wages”.
The increase to the national living wage is lower than over the past two years, with those aged 21+ seeing their wages go up by more than 9% each year.
However, the increase for younger members of the workforce is much greater.
Apprentices and those under 18 will be getting an 18% increase, with a pay bump from £6.40 to £7.55 an hour.
Business Secretary Jonathan Reynolds said: “Good work and fair wages are in the interest of British business as much as British workers.
“This government is changing people’s lives for the better because we know that investing in the workforce leads to better productivity, better resilience and ultimately a stronger economy primed for growth.”
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The government says the pay increases mean 3.5 million people will get a pay rise next year.
Baroness Philippa Stroud, the chair of the Low Pay Commission, said: “The government has been clear about their ambitions for the national minimum wage and its importance in supporting workers’ living standards.
“At the same time, employers have had to deal with the adult rate rising over 20% in two years, and the challenges that has created alongside other pressures to their cost base.
“It is our job to balance these considerations, ensuring the NLW provides a fair wage for the lowest-paid workers while taking account of economic factors.
“These rates secure a real-terms pay increase for the lowest-paid workers. Young workers will see substantial increases in their pay floor, making up some of the ground lost against the adult rate over time.”
Paul Nowak, the general secretary of the Trades Union Congress, said: “The government is delivering on its promise to make work pay.
“This increase will make a real difference to the lowest paid in this country at a time when rents, bills and mortgages are high.”
He added that “young workers deserve to be paid the fair rate for the job”.
“But hundreds of thousands of young workers are currently suffering a huge pay penalty – because of an outdated and discriminatory system,” he said.
The government will fund any further local inquiries into the grooming gangs scandal that are deemed necessary, Sir Keir Starmer has said.
However, the prime minister said it is his “strong belief” that the focus must be on implementing recommendations from the Alexis Jay national review before more investigations go ahead.
It follows a row over whether Labour is still committed to the five local inquiries it promised in January, after safeguarding minister Jess Phillips failed to provide an update on them in a statement to parliament hours before it closed for recess on Tuesday.
Image: Sir Keir Starmer joins police officers on patrol in Cambridgeshire. Pic: PA
Instead, Ms Phillips told MPs that local authorities will be able to access a £5m fund to support locally-led work on grooming gangs.
On Thursday morning, Home Secretary Yvette Cooper insisted the “victim-centred, locally-led inquiries” will still go ahead, while a Home Office source told Sky News more could take place in addition to the five.
Speaking to Sky News’ Rob Powell later on Thursday, Sir Keir confirmed that there could be more inquiries than those five but said the government must also “get on and implement the recommendations we’ve already got”.
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The prime minister said: “Of course, if there’s further local inquiries that are needed then we will put some funding behind that, and they should happen.
“But I don’t think that simply saying we need more inquiries when we haven’t even acted on the ones that we’ve had is necessarily the only way forward.”
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Yvette Cooper speaks to Sky News
Ms Phillips’s earlier comments led to accusations that the government was diluting the importance of the local inquiries by giving councils choice over how to use the funds.
Sky News understands she was due to host a briefing with MPs this afternoon at 5pm – the second she had held in 24 hours – in an attempt to calm concern amongst her colleagues.
Review recommendations ‘sat on a shelf’
Sir Keir insisted he is not watering down his commitment for the five local enquiries, but said the Jay recommendations were “sitting on a shelf under the last government” and he is “equally committed” to them.
He added: “At the most important level, if there is evidence of grooming that is coming to light now, we need a criminal investigation. I want the police investigation because I want perpetrators in the dock and I want justice delivered.”
In October 2022, Professor Alexis Jay finished a seven-year national inquiry into the many ways children in England and Wales had been sexually abused, including grooming gangs.
Girls as young as 11were groomed and raped across a number of towns and cities in England over a decade ago.
Prof Jay made 20 recommendations which haven’t been implemented yet, with Sir Keir saying on Thursday he will bring 17 of them forward.
However, the Tories and Reform UK want the government to fund a new national inquiry specifically into grooming gangs, demands for which first started last year after interventions by tech billionaire Elon Musk on his social media platform X.
Image: Elon Musk has been critical of Labour’s response to grooming gangs and has called for a national inquiry. Pic: Reuters
‘Fuelling confusion’
Reform leader Nigel Farage said the statement made by Ms Phillips “was one of the most cowardly things I have ever seen” as he repeated calls for a fresh inquiry.
Robert Jenrick, the shadow justice secretary, also told Sky News that ministers were “fuelling confusion” and that the “mess.. could have been avoided if the government backed a full national inquiry – not this piecemeal alternative”.
Tory leader Kemi Badenoch said the government needed to look at “state failings” and she would try and force a fresh vote on holding another national inquiry, which MPs voted down in January.
‘Political mess’
As well as facing criticism from the Opposition, there are signs of a backlash within Labour over how the issue has been handled.
Labour MPs angry with government decision grooming gangs
With about an hour until the House of Commons rose for Easter recess, the government announced it was taking a more “flexible” approach to the local grooming gang inquiries.
Safeguarding minister Jess Philips argued this was based on experience from certain affected areas, and that the government is funding new police investigations to re-open historic cases.
Speaking on Times Radio, former chair of the Equality and Human Rights Commission Sir Trevor Phillips called the move “utterly shameful” and claimed it was a political decision.
One Labour MP told Sky News: “Some people are very angry. I despair. I don’t disagree with many of our decisions but we just play to Reform – someone somewhere needs sacking.”
The government has insisted party political misinformation was fanning the flames of frustration in Labour.
The government also said it was not watering down the inquiries and was actually increasing the action being taken.
But while many Labour MPs have one eye on Reform in the rearview mirror, any accusations of being soft on grooming gangs only provides political ammunition to their adversaries.
One Labour MP told Sky News the issue had turned into a “political mess” and that they were being called “grooming sympathisers”.
On the update from Ms Phillips on Tuesday, they said it might have been the “right thing to do” but that it was “horrible politically”.
“We are all getting so much abuse. It’s just political naivety in the extreme.”
Ms Phillips later defended her decision, saying there was “far too much party political misinformation about the action that is being taken when everyone should be trying to support victims and survivors”.
“We are funding new police investigations to re-open historical cases, providing national support for locally led inquiries and action, and Louise Casey… is currently reviewing the nature, scale and ethnicity of grooming gangs offending across the country,” she said.
“We will not hesitate to go further, unlike the previous government, who showed no interest in this issue over 14 years and did nothing to progress the recommendations from the seven-year national inquiry when they had the chance.
“We will leave no stone unturned in pursuit of justice for victims and will be unrelenting in our crackdown on sick predators and perpetrators who prey on vulnerable children.”
Elected councillors must “do what they need to do” to serve the people, Kemi Badenoch said after she suggested Reform and the Tories could form alliances at a local level.
The Conservative leader said that while she doesn’t actively support council coalitions, she is ultimately leaving the decision to local politicians “because they can’t have a re-election if they don’t have an outright majority”.
However, she said that at a national level “we’re trying to rebuild trust with the public” and “suddenly saying that we’re rushing to form a pact or merge with another party is not what I was elected to do”.
Ms Badenoch was speaking during a local election visit to Lancashire after earlier comments about local coalitions were attacked by opposition parties.
She has consistently ruled out a pact at a national level with Reform UK, whose leader Nigel Farage has vowed to “destroy” the Tories.
But speaking to BBC Breakfast on Thursday, she suggested the picture could be different at a local level, saying: “I’ve seen Conservatives go into coalition with Labour, with Liberal Democrats, with Independents.
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“What I’m telling local leaders across the country (is) they have to do what is right for the people in their local area and they must stick to Conservative principles.”
Image: Nigel Farage has vowed to destroy the Tories. Pic: PA
Labour Party chairwoman Ellie Reeves said it is “crystal clear” that if you vote Reform or Conservative, “you’re opening the door to more of the Tory chaos that held our country back over the past 14 years”.
Liberal Democrats deputy leader Daisy Cooper said the two parties had “merged in all but name”, adding: “You couldn’t put a cigarette paper between Badenoch and Farage when it comes to their policies. It’s clear the Conservatives have totally abandoned the centre ground.”
Reform meanwhile snubbed the offer, saying they are “not interested in coalitions” and are focused on “taking the fight to Labour and the Conservatives”.
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‘Outrageous’ welfare budget
Ms Badenoch later insisted she is “‘not supporting coalitions at a local level”.
She told reporters: “I am leaving the decision to local leaders because they can’t have a re-election if they don’t have an outright majority.
“And it’s right that they do what they need to do to serve the people of a community. These local elections are not opinion polls.”
The Tories face an uphill battle at the local elections on 1 May, with polling suggesting the party is yet to recover from its catastrophic general election defeat in July.
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Latest YouGov polling for Sky News’ Sam and Anne’s podcast put Labour marginally in the lead, followed by Reform and then the Tories.
The Lib Dems were fourth but their 17 points was the highest level of support they’ve had since 2017.
The Tories are defending more than half of the seats up for election, having won them in 2021 thanks in part to a Covid-19 vaccine polling bounce.
Votes will take place in 23 of England’s 317 local authorities, and there will also be a by-election in Runcorn following the resignation of Labour’s Mike Amesbury, who last month was given a suspended prison sentence for punching a man.
Senior Tory MP Esther McVey has previously said the Tories should “let Reform win” in Runcorn as part of an electoral pact, but Ms Badenoch today said: “That’s absolutely the wrong thing.”
She added: “We need to make sure that people always have the option to vote Conservative, and that’s the message that I’m taking out for these local government elections on May 1.”
Escalating geopolitical tensions threaten to balkanize blockchain networks and restrict users’ access, crypto executives told Cointelegraph.
On April 9, US President Donald Trump announced a pause in the rollout of tariffs imposed on certain countries — but the prospect of a global trade war still looms, especially because Trump still wants to charge a 125% levy on Chinese imports.
Industry executives said they fear a litany of potential consequences if tensions worsen, including disruptions to blockchain networks’ physical infrastructure, regulatory fragmentation, and censorship.
“Aggressive tariffs and retaliatory trade policies could create obstacles for node operators, validators, and other core participants in blockchain networks,” Nicholas Roberts-Huntley, CEO of Concrete & Glow Finance, told Cointelegraph.
“In moments of global uncertainty, the infrastructure supporting crypto, not just the assets themselves, can become collateral damage.”
According to data from CoinMarketCap, cryptocurrency’s total market capitalization dropped approximately 4% on April 10 as traders weighed conflicting messages from the White House on tariffs amid a backdrop of macroeconomic unease.
Crypto’s market cap retraced on April 10. Source: CoinMarketCap
Bitcoin (BTC) is especially vulnerable to a trade war since the network depends on specialized hardware for Bitcoin mining, such as the ASIC chips used to solve the network’s cryptographic proofs.
“Tariffs disrupt established ASIC supply chains,” David Siemer, CEO of Wave Digital Assets, told Cointelegraph. Chinese manufacturers such as Bitmain are key suppliers for miners.
However, “the greater threat is the erosion of blockchain’s core value proposition—its global, permissionless infrastructure,” Siemer said. This could be especially problematic for everyday crypto holders.
“If global trade breaks down and capital controls tighten, it may become harder for citizens in restrictive countries to acquire bitcoin,” said Joe Kelly, CEO of Unchained. “Governments could crack down on exchanges and on-ramps, making accumulation and usage more difficult,” Kelly added.
Bitcoin’s performance versus stocks. Source: 21Shares
Ironically, these types of fears also underscore the importance of cryptocurrencies and decentralized blockchain networks, the executives said.
“While the environment is challenging, it also creates an opening for crypto to prove its long-term value and utility on the global stage,” noted Fireblocks’ executive Neil Chopra.