UK national living wage, minimum wage to rise from Apr 2026

The national living wage (NLW) for those over 21 will rise by 50 pence an hour, or 4.1 per cent, to £12.71 ($17).

The UK government recently accepted the advice of Low Pay Commission on the changes to minimum wage rates.
The national living wage (NLW) for those over 21 will rise by 50 pence an hour, or 4.1 per cent, to £12.71 ($17).
The national minimum wage (NMW) for those aged 18 to 20 will rise by 8.5 per cent to £10.85.
NMW for 16 and 17 year olds will rise to £8 per hour—a 6-per cent uplift.

The national minimum wage (NMW) for those aged 18 to 20 will rise by 8.5 per cent to £10.85. NMW for 16 and 17 year olds will rise to £8 per hour—a 6-per cent uplift.

Reeves said the move, which would take effect in April next year, would support people struggling to make ends meet, according to domestic media.

The latest increase in NLW for workers 21 and over is worth £900 annually and represents a 22-per cent increase over the past four years. Workers aged 18 to 20 will get an even larger rise, worth £1,500 a year.

Trade bodies and economists, however, cautioned the latest hike may harm employment, particularly among the young.

“Every above-inflation wage increase leads to higher business costs, lower investment and fewer opportunities for individuals. Making employment more expensive risks deepening the jobs crisis among young people,” Jane Gratton, deputy director of public policy at the British Chambers of Commerce (BCC), said in a statement. 

“Our research shows that labour costs remain the biggest cost pressure for SMEs [small and medium enterprises], cited by 72 per cent of businesses in Q3. There’s a limit to how much additional cost employers can bear without something having to give,” she said.

“With unemployment rising, the government needs to use tomorrow’s Budget to ease cost pressures for business. Crucially, there must be no new tax increases for businesses,” she added.

Fibre2Fashion News Desk (DS)