What’s New: UK Minimum Wage in 2026
From 1 April 2026, the official minimum wage rates in the UK are increasing again.
For workers aged 21 and over (the National Living Wage, NLW): £12.71 per hour — a 4.1 % rise.
For those aged 18–20: the rate becomes £10.85 per hour.
For 16–17-year-olds (and apprentices under certain conditions): £8.00 per hour.
The daily accommodation offset — for workers provided accommodation — also rises, to £11.10 per day.
For a full-time worker (37.5 hours/week), the increase in NLW translates to a meaningful boost in gross pay — the government estimates the rise adds roughly £900–£1,000 per year for many low-paid workers.
Why the Rise Was Approved
The increases follow the recommendations of the independent Low Pay Commission (LPC), whose remit includes ensuring that the NLW does not fall below two-thirds of median UK hourly earnings.
In its 2025 advice, the LPC took into account inflation forecasts, cost-of-living pressures, household incomes, and broader economic conditions — balancing wage improvements with labour market realities for employers.
What It Means for Workers (and Employers)
For workers: More income — especially meaningful for those on low pay or working full-time. For younger workers and apprentices, the increases narrow the gap with adult rates, offering better support.
For employers: Wage bills will rise, particularly for businesses that rely on many minimum-wage staff. Some sectors (e.g. retail, hospitality) may feel pressure to adjust pricing, staffing, or working hours.
The 2026 rise in the UK minimum wage marks another important step in supporting workers through ongoing cost-of-living pressures. With higher rates across all age groups, millions of employees will see a welcome boost to their earnings, while employers continue to navigate the balance between fair pay and rising operating costs. As the government moves closer to its long-term goal of aligning the National Living Wage with median earnings, these annual increases will play a key role in shaping both workplace standards and the wider economy. What’s clear is that the 2026 update isn’t just a numerical change — it’s part of a broader drive to ensure work truly pays.