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Usdaw welcomes a 4.1% pay rise for millions of the lowest paid workers

Retail trade union Usdaw has welcomed that the Chancellor has accepted recommendations from the Low Pay Commission (LPC), so that those on low incomes are “properly rewarded” for their work. Usdaw had submitted evidence to the LPC calling for a substantial increase in rates to counter ongoing cost of living pressures and progress on raising youth rates.

25 November 2025

0 min read

New minimum wage hourly rates, from 1 April 2026:

·       National Living Wage (over-21s): £12.71 (+ £0.50) (+4.1%)

·       18 to 20-year-olds: £10.85 (+ £0.85) (+8.5%)

·       16/17s and apprentice rate: £8 (+ £0.45) (+6%)

Chancellor of the Exchequer Rachel Reeves said: “I know that the cost of living is still the number one issue for working people and that the economy isn’t working well enough for those on the lowest incomes. Too many people are still struggling to make ends meet, and that has to change. That’s why today I’m announcing that we will raise the National Living Wage and also the National Minimum Wage, so that those on low incomes are properly rewarded for their hard work. These changes are going to benefit many young people across our country, getting their first job.”

Joanne Thomas – Usdaw general secretary says: “Usdaw very much welcomes these significant pay increases for the lowest paid, after years of pay not keeping pace with prices under the Tories. This is because Labour changed the Low Pay Commission’s remit so that they now take account of the cost of living. Today’s announcement also demonstrates further progress towards ending rip-off youth rates with higher percentage increases for under-21s. 

“Labour in government is delivering the new deal for workers that Usdaw long campaigned for, despite determined opposition from the Tories, Lib Dems and Reform. Alongside these minimum wage increases, the Employment Rights Bill will deliver fairness by stopping rogue employers undercutting those who treat their staff properly. When passed, it will give workers security, respect and the decency of an income they can live on. 

“These are welcome protections for workers that should help them through cost of living pressures. This is the transformational change that the country voted for and Labour is delivering, after 14 years of Tory chaos, austerity and attacks on workers’ rights.”

Notes for editors:

Usdaw (Union of Shop, Distributive and Allied Workers) is one of the fastest growing unions in the TUC and the UK's fifth biggest trade union with around 360,000 members. Most Usdaw members work in the retail sector, but the union also has many members in transport, distribution, food manufacturing, chemical industry and other trades www.usdaw.org.uk

For Usdaw press releases visit: www.usdaw.org.uk/news and you can follow us on Bluesky @usdawunion.bsky.social and Twitter/X @UsdawUnion

Summary

Retail trade union Usdaw has welcomed that the Chancellor has accepted recommendations from the Low Pay Commission (LPC), so that those on low incomes are “properly rewarded” for their work. Usdaw had submitted evidence to the LPC calling for a substantial increase in rates to counter ongoing cost of living pressures and progress on raising youth rates.