Government announces National Living and Minimum Wage Increases from April 2026

27th November 2025

James Cairns, Solicitor

The government has accepted the recommendations made by the Low Pay Commission and announced an increase to the National Living Wage (NLW) and National Minimum Wage (NMW) rates, to take effect on 1 April 2026:

 

Age (or category) Current Rate New Rate from 1 April 2026 Increase
21and over (NLW) £12.21 / hour £12.71 /hour + £0.50 (+ 4.1%)
NMW 18–20 years old £10.00 / hour £10.85 /hour + £0.85 (+ 8.5%)
NMW 16–17 years old and Apprentices £7.55 / hour £8.00 /hour + £0.45 (+ 6.0%)

Next steps for employers:

  • Review pay rates and update payroll systems to ensure compliance with the new rates of pay from 1 April 2026.
  • Ensure no employee is paid below the statutory minimum.
  • Verify that payments for lower paid workers are still compliant and diarise any changes to pay once employees enter a new band or complete their apprenticeship.
  • Consider the impact on budgets, pay scales and appropriate cost planning.
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