National Living Wage and Minimum Wage Set to Rise from April 2026: What Employers and Workers Need to Know

The UK government has confirmed the new minimum wage rates that will apply from 1 April 2026, with significant increases across most age groups. These changes are important for employers to plan for and for workers to understand how their earnings will be affected.

Key Rate Changes from 1 April 2026

📈 National Living Wage (NLW)

• For workers aged 21 and over, the NLW increases by 4.1% to £12.71 per hour.
• This change is projected to benefit around 2.4 million low-paid workers, boosting the annual income of a full-time worker on the NLW by around £900.

💷 National Minimum Wage (NMW)

• 18–20-year-olds: increases by 8.5% to £10.85 per hour, worth around £1,500 more a year for a full-time worker.
• 16–17-year-olds and apprentices: increase by 6% to £8.00 per hour.

The 18–20 rate continues the government’s long-term plan to narrow the gap with the adult rate, working towards a future where a single adult rate applies to all workers aged 18 and over.

Why This Matters Now

These changes reflect the recommendations of the Low Pay Commission, and the government has accepted them in full. While the headline increase for the NLW is moderate compared to recent years, younger workers see proportionally larger uplifts in their pay rates.

For employers, updating payroll systems and employment contracts well in advance is essential to ensure compliance from April.

Broader Context: Cost Pressures on Business

While worker organisations have welcomed the rise, there is wider economic context that matters to employers.

For example:

• Recent increases in employers’ National Insurance contributions and higher energy costs are already squeezing business budgets.
• Some employers, particularly in tight-margin sectors like retail, are reporting challenges balancing pay costs with operational sustainability.

These factors mean that wage increases, though positive for workers, require careful planning by business leaders.

Looking Ahead

With these rates locked in from 1 April 2026, now is a good time for employers to review their staffing budgets and for employees to understand how their take-home earnings will change.

Whether you’re managing payroll, thinking about recruitment, or planning for business growth, these statutory wage changes should be on your radar.

👉 Talk to us about your staff costs and how to plan for these and other upcoming business impacts.