On 1st April 2026, increases to minimum pay rates – including both the National Living Wage (NLW) for workers aged 21 and over, and the National Minimum Wages (NMW) for Apprentices*, and those aged 16-17, and 18-20, will come into effect.
Confirmed by the current Labour government last year within their Autumn Statement, these mandatory pay rises will boost the pay packets of an estimated 2.7 million people.
We’re used to the minimum pay rates increasingly annually, but this year, with the first major raft of changes under the Employment Rights Act 2025 also coming into effect at the same time, it's hit fewer headlines than usual.
First implemented ahead of last year's changes, Labour again asked the Government’s independent advisory body, the Low Pay Commission, to review its process for setting the proposed figures, considering the cost of living, and any forecasted changes to inflation up to March 2027. This forms part of Labour’s ‘Make Work Pay’ plan.
As of 1st April 2026, the NLW – for those aged 21 and over - will rise by 50p / 4.1% from £12.21 to £12.71 per hour.
April 2026 won’t see any changes to the age brackets – NLW still only applies to those aged 21 and over, with a separate NMW rate for those aged 18-20 remaining in place. However, the groundwork is being done to further align the rates with a view to all over-18s receiving the same minimum pay in the future.
As of 1st April 2026, the NMW for those aged 18-20 will rise by 85p from £10.00 to £10.85, and for those aged 16 and 17, as well as Apprentices*, it will rise by 6% from £7.55 to £8.00.
* The Apprentice rate applies to workers undertaking an apprenticeship who are aged 19 or under, or aged over 19 but in their first year of the apprenticeship.
| Rate from 1 April 2026 | Current Rate | Increase |
National Living Wage for Ages 21+ | £12.71 | £12.21 | £0.50 / 4.1% |
18-20 National Minimum Wage | £10.85 | £10.00 | £0.80 / 8.5% |
16-17 National Minimum Wage | £8.00 | £7.55 | £0.45 / 6% |
Apprentice National Minimum Wage | £8.00 | £7.55 | £0.45 / 6% |
So, is your pay about to increase? Or, if you’re a business owner, what do you need to know about these changes?
WHAT IS THE NATIONAL LIVING WAGE?
Introduced in April 2016, it’s essentially a statutory minimum hourly rate that employers must pay employees. It was introduced as an extension of the National Minimum Wage which was already in place. Up until April 2021, it applied to those aged 25 and over, but this was extended to include those aged 23 and 24, then subsequently extending even further to those aged 21 and 22 in April 2024.
It’s not to be confused with the ‘Living Wage’ or the ‘Real Living Wage’ which is a non-mandatory amount recommended by an independent campaign group. They believe the amount set by the government is not sufficient, and that there should be a London weighting for those living in the capital, due to higher living costs.
WHO DECIDES THE NLW / NMW?
Simply put, the Government. Reviewed annually and announced in the Budget by the Chancellor, it’s based on advice provided to the Government by an independent advisory body called the Low Pay Commission (LPC). This body is made up of employers, trade unions and academics.
WHAT DO THESE INCREASES MEAN FOR EMPLOYERS?
Employers must pay their employees at least the relevant minimum hourly rate. Employers who breach NLW and NMW rules could face legal action from employees and investigation by HMRC (this role will transfer to the new Fair Work Agency from April 2026), which can result in financial penalties as well as being publicly ‘named and shamed’.
It’s also worth noting that this isn’t just something which should be reviewed every April when the rates increase, you need to diarise any workers’ birthdays which will take them to the next level, such as ages 18 or 21 and track any workers on recognised Apprenticeships.
There have been several high-profile cases that have seen employers who have inadvertently fallen foul of the regulations. It’s not just the rates of pay you should consider; you also need to look at factors such as your practices relating to working time, pay periods and whether any deductions are being made from worker’s pay. It can be a difficult field to navigate so we recommend taking specific legal advice relating to your individual circumstances.
Legal obligations aside, workers who are correctly remunerated are going to feel more valued and engaged, so it really is in the employer’s best interest to make sure you’re getting it right.
Another consideration for employers is, although your pay rates may be above the legal minimums, these increases can ‘eat’ into any other pay rates such as premiums paid for unsocial hours. Suddenly those enhanced rates might not seem so attractive to your staff. So, it might be relevant to you to look at your pay structure as a whole to ensure your pay rates are competitive.
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**NOTE - THIS BLOG DOES NOT CONSTITUTE LEGAL ADVICE AND IS PROVIDED AS A GENERAL GUIDE ONLY, ALWAYS SEEK YOUR OWN LEGAL ADVICE**