National Minimum and Living Wage Changes in April 2026

Styles & Associates
Sep 25
3 min read

What Employers Need to Know

The UK Government has confirmed that both the National Minimum Wage (NMW) and National Living Wage (NLW) will rise again in April 2026. The Low Pay Commission (LPC) has released its latest projections in August, and while the final figures are not yet confirmed, the direction is clear: pay rates are moving upward, with important implications for workers and employers.

National Minimum and Living Wage - Key Changes for April 2026

1. National Living Wage (NLW) Increase

The National Living Wage is set to rise from £12.21 per hour to an estimated £12.71 by April 2026. Current LPC projections suggest the figure could land anywhere between £12.55 and £12.86, depending on inflation, the cost of living, and wider economic conditions.

This increase reflects the government’s commitment that the NLW should not fall below two-thirds of median UK earnings, a benchmark used internationally to define low hourly pay.

2. Rates for Younger Workers and Apprentices

Alongside the NLW, the government has asked the LPC to recommend new rates for younger workers (under 18s) and apprentices. The remit is to set these wages as high as possible without harming job prospects. This means younger workers may also see significant rises, though the exact figures will depend on the LPC’s consultation and analysis.

3. Link to Cost of Living and Inflation

Unlike previous years, the remit explicitly ties the 2026 rates to inflation forecasts and cost-of-living changes between April 2026 and April 2027. This approach is designed to ensure wages keep pace with real-world pressures but also takes into account the potential knock-on effects for business competitiveness and the labour market.

4. Economic Conditions as a Deciding Factor

The LPC has been asked to balance wage growth with the broader health of the UK economy. This means factors such as productivity, employment rates, and business resilience will influence the final rates. The government wants to avoid setting levels that could unintentionally harm jobs or push small businesses into financial difficulty.

What This Means for Employers

For employers, the April 2026 changes bring higher payroll costs and a need for proactive planning.

How Employers Can Prepare:

Review Workforce Costs
Map out how the projected rise to £12.71 (or higher) will affect your wage bill. Consider not only frontline workers but also those on pay bands just above the NLW who may expect upward adjustments to maintain pay differentials.
Update Budgets and Forecasts
Build the new rates into financial forecasts for 2026-2027. For sectors with tight margin, such as retail, hospitality, and care, factoring in the increase early will help avoid sudden financial strain.
Check Payroll Systems
Ensure your payroll software and HR systems are updated in line with the new rates. Automatic updates are common, but employers remain responsible for compliance if errors occur.
Communicate with Staff
Be transparent with employees about the changes. Rising wages are positive news for staff, and clear communication helps manage expectations across different roles.
Review Employment Structures
Consider how the increase may impact overtime costs, shift premiums, or the use of apprenticeships. It may also be a good opportunity to review productivity measures or explore flexible staffing models.
Stay Informed
The LPC’s final recommendations for April 2026 will be published closer to the date. Keep an eye on announcements so you can adjust plans if the final rate is at the higher end of projections.

Key Dates:

August 2025: The government provided the LPC with its formal remit for the 2026 rates. The LPC subsequently published its revised indicative estimate for April 2026, projecting a rate of £12.71.
End of October 2025: The LPC is scheduled to provide its final recommendations for the April 2026 NLW and National Minimum Wage (NMW) rates to the government.
April 2026: The new NLW and NMW rates will officially come into effect.

Partner with Styles & Associates to Navigate Change

The April 2026 rise in the National Minimum and Living Wage marks another step in the government’s plan to tackle low pay. For workers, it offers meaningful protection against rising living costs. For employers, it means preparing early and reviewing payroll to make sure you are ready for the changes.

By planning ahead and partnering with an experienced account, businesses can manage the transition smoothly while supporting their workforce.

Get in touch to discuss working with Styles & Associates on 01420 541 554

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