What is the National Minimum Wage in 2025?
The National Minimum Wage rates change on 1 April each year.
As of April 1, 2025, the National Minimum Wage in the UK is:
| Age/ circumstance | Current rate per hour |
|---|---|
| Aged 21 & over | £12.21 |
| Aged 18 to 20 | £10 |
| Aged under 18 | £7.55 |
| Apprentice | £7.55 |
Five steps to financial planning on minimum wage
1. Check whether you’re entitled to any benefits
If you’re on a low income, you could be eligible to claim certain benefits, depending on your circumstances. You can use the free Turn2Us Benefits Calculator to check to see whether you’re entitled to any benefits.
2. Set a monthly budget
While it might sound boring, understanding your income and outgoings is the first step to financial planning on a budget.
Here’s how to do it:
- Work out how much money you’re guaranteed to have coming in each month. This can include income from wages, a side hustle, and any benefits.
- Next, make a list of all your monthly outgoings, such as housing, rent, food, commuting costs, and pet care.
- Add the cost of all these outgoings together and subtract the total from your guaranteed income.
- The amount of money you have left after paying for all your outgoings is your disposable income. This is how much you have to save or spend on things like hobbies, leisure activities, and socialising each month.
- It’s a good idea to keep track of your disposable income to make sure you don’t spend above your means.
Not sure where to start? Try the free MoneyHelper budget planner.
3. Cut your costs
Now that you have an idea of what you’re working with each month, it’s a good idea to go through your outgoings with a fine-tooth comb.
You might be surprised to see how many subscriptions are leaving your account each month, and doing this exercise could help you find services that you no longer use. Not watched Netflix or been to the gym for a while? Consider cancelling those subscriptions to free up your budget. You can always sign up again in the future if you change your mind.
4. Think very carefully before you apply for credit
When your income doesn’t leave you with much wiggle room each month, an unexpected expense can be devastating for your budget.
In the event of a financial emergency, such as a broken boiler or a car that’s failed its MOT, you might wonder whether applying for credit could be a suitable way to cover the cost.
While applying for credit could be a possibility, you should think very carefully beforehand. When you apply for a loan or credit card, you’ll be required to pay back the money you borrow – plus interest – in monthly instalments. You’ll need to make sure that the cost of your repayments is affordable for you. Repaying credit should never leave you unable to pay for your necessary outgoings, including housing and bills.
Alternatives to applying for credit could include borrowing money from friends and family, using any savings that you currently have, or, if the expense can wait, taking the time to save up the money instead.
5. Try and save money as and when you can
Saving money can be really difficult, especially when your budget is already stretched from month to month.
The good thing about saving is that you don’t have to put huge amounts of money away. You can save as little or as much as you’re able to, and it will still stand you in a better financial position than if you had no savings at all.
Even putting a fiver away here and there will soon add up.
Saving money can build financial confidence and offer a sense of pride, as well as provide a potential back-up in case of a financial emergency.
I’m on a low income and need money; what can I do?
If you’ve claimed Universal Credit for more than 6 months, you could apply for a Budgeting Advance. The money you borrow will be repaid from your Universal Credit payments, meaning you’ll get a reduced amount until the balance of the advance has been cleared. This will typically be over a course of 24 months.
A Budgeting Advance could help to cover the cost of things like work-related expenses, essential items such as clothing, or a replacement for a necessary home appliance.
If you have received Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, and/or Pension Credit for 6 months or more, you could be eligible for a Budgeting Loan.
Budgeting Loans are interest-free, meaning you’ll only repay the exact amount of money that you borrow. Repayments will be taken out of your benefits, and you’ll usually be required to clear the balance of the loan within 2 years.
Loans for minimum wage: could I get a loan if I’m on minimum wage?
You could get a loan if you’re on minimum wage, although you should bear in mind that some lenders may require you to have a certain amount of income paid into your bank account each month before you can be considered for a loan.
CashLady is a credit broker, and we could help you search for a suitable short-term loan between £100 and £10,000 with a repayment term from 3 to 60 months, depending on the amount of money you apply to borrow.
Bad credit? CashLady could still help you search for a loan. Several of the lenders on the CashLady panel offer bad credit loans, although these could come with a higher rate of interest.
Could I search for a loan with CashLady if I’m on minimum wage?
Yes, you can.
You’re welcome to search for a loan with CashLady if you:
- Are over the age of 18;
- Are a UK resident;
- Have a UK bank account with a valid debit card; and
- Have a regular source of income paid into your bank account.
How to save money when you’re on minimum wage
If you’re looking for ways to save money, you might be interested in browsing through some of our blogs:
I’m worried about money; who can I speak to?
StepChange, MoneyHelper, Citizens Advice, and National Debtline are UK-based charities and organisations, all of which can offer you free, confidential, and impartial financial advice and support.
The most important thing to remember is that you don’t have to face whatever you’re going through alone. Money worries are unfortunately extremely common, and they’re nothing to be ashamed of.
*We used this salary calculator to determine our figures.