The UK Government annually reviews minimum wage rates, relying on recommendations from the Low Pay Commission (LPC), an independent body that evaluates factors such as the cost of living, business impacts, and economic conditions. In its latest review, the LPC found that the 2024 National Living Wage rate of £11.44 did not meet the target of achieving two-thirds of median earnings. This prompted significant adjustments for 2025.

Starting in April 2025, the National Minimum Wage for workers aged 21 and over will increase by 6.7%, rising to £12.21 per hour. This adjustment, which is three times the current inflation rate, underscores the government’s commitment to improving wages for adult employees.

Younger workers will also benefit from notable increases to the National Minimum Wage rates:

Additionally, the accommodation offset, a permitted deduction for employers providing housing, will increase by 6.7%, bringing it to £10.66 per day.

Changes to Statutory Sick Pay (SSP) in 2025

Statutory Sick Pay (SSP) will also see changes in 2025. The weekly rate will increase from £116.75 to £118.75 to reflect living cost adjustments. A notable reform will eliminate the earnings qualification threshold, meaning all employees, regardless of their pay level, will qualify for SSP if they meet the required criteria.

Key changes in 2024

Flexible working

The Employment Rights (Flexible Working) Act 2023 introduced changes affecting flexible working.Employees can now submit two flexible working requests annually, compared to one previously. Employers must respond to these requests within two months instead of three.

Employers are required to provide clear reasons for denying requests, while employees are no longer obliged to explain the potential impact of their request.

Employees are also no longer required to wait 26 weeks before making a request and can do so from their first day of employment.

Equality laws

Recent amendments to the  Equality Act and related laws have strengthened workplace protections:

Redundancy Protection During Parental Leave

 Significant changes have been made to redundancy protections for employees taking parental leave. Pregnant employees, along with those on maternity, adoption, or shared parental leave, now have redundancy protection for 18 months. This protected period starts as soon as the employee notifies their employer of their pregnancy.

Employers must prioritise these employees during redundancy processes. Failing to do so risks the redundancy being deemed automatically unfair and potentially discriminatory under employment law.