The UK government introduced a new minimum wage rate for all but the youngest workers, the national living wage, in 2016. Initially, it was for those aged 25 and over, but it is now for anyone aged 21 and over.
In 2024, the Labour government confirmed plans to apply the wage rate to all adults.
The national living wage (NLW) is compulsory and the Low Pay Commission (LPC) recommends future rises, maintaining it at two-thirds of median hourly earnings and, from 2025, taking into account the cost of living.
The national living wage is different to the Living Wage, a voluntary pay rate independently set by the Living Wage Foundation. The ‘real’ Living Wage is calculated according to the basic cost of living in the UK.