The Government has confirmed that the National Living Wage has risen by 4.1%, meaning workers aged 21 and over should now receive at least £12.71 per hour.

The increase is expected to benefit around 2.4 million workers, with full-time employees seeing their annual earnings rise by roughly £900.

For those working full-time hours, the changes mean:

• A 40-hour week now equates to around £26,436 per year (before tax)
• A 37.5-hour week brings in about £24,784
• A 35-hour week reaches approximately £23,132 annually

But despite the pay boost, workers are being warned to check their payslips carefully to ensure employers are applying the new rates correctly from the first pay period in April.

Younger workers see biggest increases

The National Minimum Wage for younger workers has also risen sharply:

• 18 to 20-year-olds: up 8.5% to £10.85 per hour, potentially adding £1,500 a year for full-time staff
• 16 to 17-year-olds and apprentices: up 6% to £8 per hour

The Government says the larger increase for 18 to 20-year-olds is part of a longer-term plan to create a single adult wage rate.

Why checking your pay matters

With the new rates taking effect immediately, any underpayment could leave workers out of pocket. Employees are encouraged to:

• Review their hourly rate
• Check recent payslips
• Raise concerns quickly if pay doesn’t match the new legal minimum

Chancellor Rachel Reeves said she had accepted recommendations from the Low Pay Commission so that those on low incomes are “properly rewarded” for their work.

The Chancellor 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.”

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What does the minimum wage increase mean for small businesses?

Kate Underwood, Managing Director and HR Director at Southampton-based Kate Underwood HR and Training says: “It’s good news for workers who’ve been stuck on the lowest rung for too long. £12.71 an hour still won’t stretch far in today’s world, but it’s a start. And closing the gap for younger workers? About time.

“Will it be tough for small businesses? Yep. But so is constant staff turnover, sick days from burnout, and people juggling three jobs just to pay the bills.

“Can the UK afford it? Wrong question. Can we afford not to pay people properly? That’s the real one.”

Prem Raja, head of Trading Floor at Currencies 4 You agrees that it’s good news for workers.

“They need the extra cash and hopefully they spend it locally,” he says. “But we have to be real about the pressure this puts on business owners. It is getting incredibly hard to run a company right now. We’re already dealing with rising National Insurance and a weak Pound. Adding a big wage hike on top, especially that huge jump for younger staff, is squeezing us from every side.

“The brutal truth is that if employing people becomes too expensive, businesses just won’t hire. We’ll see jobs disappear because owners simply can’t afford the payroll, or prices will have to go up, which just fuels inflation further.

“It looks like they want to land some ‘good news’ before the Chancellor likely announces heavy tax burdens tomorrow. Without real help for small businesses, this could be the tipping point that forces many entrepreneurs to shut down.”

UK National Living Wage. Infographic from PA Graphics. (Image: PA Wire)

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But Riz Malik, director at Southend-on-Sea-based R3 Wealth also has concerns.

He says: “The last budget impacted employers view on employment by adding further costs.

“Raising the national living wage will only add to it if you factor in this and the associated employment costs. This is on the eve of the budget, which is likely to make it even more costly to do business in the UK.”

The increases will benefit a total of 2.7 million young and older workers, said the Government, adding that by seeking expert and independent advice, it was able to ensure that the right balance is struck between the needs of workers, the affordability for businesses and the opportunities for employment.

Oxford City Council fully approved plans in March for 100,000 sq ft of lab space for life sciences, innovation and technology.

After the department store chain went into administration, the three-storey branch on the corner of George Street and Magdalen Street closed early in 2021 and did not reopen after the third Covid lockdown. It has remained boarded up ever since.

READ MORE: Derelict Debenhams is being transformed into lab space

Now the building is set for major refurbishment by The Crown Estate, with work due to start to transform the building in the first half of 2027, with a targeted completion in 2029.

Last year, contractors BibbEgan Group started to strip out the former retail unit, in preparation to hand it over to The Crown Estate.

The building at 1-12 Magdalen Street is being developed as part of the estate’s partnership with leading science and innovation developer, Pioneer Group, and Oxford Science Enterprises (OSE).

Alongside a range of labs, the building will also feature dedicated conference and events space, including a ‘showcase lab’ in the heart of the development for OSE companies to make science and innovation more visible and accessible to younger audiences.

Kristy Lansdown, development director at The Crown Estate (Image: The Crown Estate)

Kristy Lansdown, managing director for development at The Crown Estate, said: “1-12 Magdalen Street will deliver world-class science facilities in the heart of the city – a place with not only a rich cultural history, but one that is entrenched in the history of science and progress.

“Alongside our outstanding partners at Pioneer Group and OSE, we are committed to creating a best-in-class lab space for innovative start-ups and scale-ups that will strengthen Oxford’s appeal to the wider sector and contribute meaningfully to economic growth.”

The revamp will help to revitalise the area at the George Street end of Cornmarket.

The Store boutique hotel has replaced the former Boswells department store, and clothing brand Mountain Warehouse is expected to move into William Baker House, the former home of Waterstones, in May.

Harry Pickering, portfolio director and head of UK Real Estate for Pioneer Group, said earlier: “Securing planning permission for 1–12 Magdalen Street is a significant milestone in transforming a prominent Oxford city centre site into a new home for science and innovation.

The former Debenhams in Oxford (Image: Perkins & Will)

“Together with The Crown Estate and Oxford Science Enterprises, we are creating high-quality laboratory space that will support the next generation of breakthrough companies and strengthen Oxford’s position as one of the world’s leading innovation ecosystems.”

Pete Wilder, head of property and operations at Oxford Science Enterprises, said: “Oxford is one of the world’s leading innovation ecosystems, and with that success comes growing demand for high-quality laboratory space in central, well-connected locations.”

The development of 1-12 Magdalen Street represents an initial investment of £125m from The Crown Estate and is part of the organisation’s commitment to invest £1.5 billion into the science, innovation and technology sectors over the next 15 years.

InDebted has appointed Rob Young as managing director for the UK, putting a long-standing board member in charge of one of the debt recovery company’s key markets.

Young takes over with a mandate to expand the business in Britain as lenders look for alternatives to legacy collections systems. He will lead UK operations, work with existing clients and support new customer acquisition in a market where collections firms handle more than £60 billion in consumer debt and generate more than £2 billion in annual revenue.

His appointment follows more than five years as non-executive chairman of InDebted UK, where he oversaw the company’s platform, client relationships and strategy. Earlier in his career, he held senior roles at Wonga and OnDeck, working on international expansion across the UK, Canada and Australia.

Most recently, Young was chief operating officer at Bedford Consulting, leading the consultancy’s operations.

Market focus

The appointment signals a stronger push in a large, heavily regulated UK market, as lenders face pressure to modernise debt recovery processes while more borrowing moves online. InDebted is positioning itself around digital consumer engagement in an industry where many workflows still rely on manual processes.

The company operates in seven countries and focuses on consumer debt recovery for financial services groups and other organisations. Its UK business forms part of a broader international strategy to win a larger share of collections work from regulated lenders.

Josh Foreman, Founder and Chief Executive Officer of InDebted, linked the appointment to that wider plan.

“The UK is a critical market for InDebted, both in its own right and as part of our broader global strategy,” said Josh Foreman, Founder and Chief Executive Officer of InDebted. “Rob’s experience building and scaling regulated fintech businesses, combined with his long-standing involvement with InDebted, makes him exceptionally well placed to lead our next phase of growth in the region. He understands the market, the regulatory landscape, and the opportunity to do things better for both clients and consumers,” added Foreman.

Sector shift

Britain’s credit market has faced sustained investment and regulatory scrutiny in recent years, particularly around consumer treatment and collections practices. That has created opportunities for specialist firms that argue digital tools can provide lenders with more consistent and traceable ways to manage overdue accounts.

Young said the timing reflected a shift in the market.

“The UK is a large, sophisticated market that is increasingly open to new approaches, particularly where technology can deliver better outcomes for customers,” said Young. “InDebted is operating in a part of the credit lifecycle that has historically seen very little innovation, and that is what initially attracted me to the business. My focus will be on building a strong UK operation, deepening relationships with clients, and establishing InDebted as a trusted, long-term partner in the market,” said Young.

His background in fintech and credit includes work at businesses that expanded across multiple regulated markets, experience likely to be relevant as UK lenders balance efficiency, consumer expectations and compliance demands. InDebted said that a mix of sector expertise and familiarity with the company made Young a natural choice for the role.

Industry role

The appointment also underlines how debt recovery has become a more visible part of the fintech market. As digital lenders, card providers and other credit businesses scale, the systems used to manage missed payments are drawing greater attention from executives and regulators alike.

For InDebted, the challenge in the UK will be to turn that demand into client growth in a market where incumbent collections models remain entrenched. Young now leads that effort after more than five years on the company’s UK board.