About 2.7 million workers in the UK are getting a pay rise as new minimum wage rates take effect.
From April, workers aged 21 and above now earn £12.71 per hour. Those aged 18 to 20 see their pay rise to £10.85, while under-18s and apprentices now earn £8 an hour.
The Low Pay Commission, which recommended the changes, said previous increases have “not had a significant negative impact on jobs.”
Prime Minister Sir Keir Starmer said the rise will benefit “the lowest paid,” but noted that the government “must go further to bear down on costs.”
The increase has been welcomed by labour advocates, who say it will help workers cope with rising living expenses.
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However, some businesses warn that higher wage bills could lead to increased prices or reduced hiring, as firms try to manage rising costs.
Chancellor Rachel Reeves previously said the policy is aimed at supporting low-income earners, adding that “the economy isn’t working well enough for those on the lowest incomes.”
Business groups have also raised concerns, noting that rising labour costs remain a key pressure and may force companies to adjust pricing.