UK minimum wage increase takes effect in April 2026

New National Minimum Wage (NMW) and National Living Wage (NLW) rates came into force across the UK at the start of April 2026. The changes increased the statutory minimum hourly pay for workers across all age groups.

Minimum Wage 2026 Updated Rates

From 1 April 2026, the National Living Wage for workers aged 21 and over increased to £12.71 per hour, up from £12.21. Other rates also rose:

• Ages 18-20: £10.85

• Ages 16-17: £8.00

• Apprentices: £8.00

The increases follow recommendations from the Low Pay Commission and apply to all eligible workers.

Impact on Employees

The change results in higher gross earnings for workers paid the minimum wage. For full-time employees, this equates to a modest increase in annual income.

The policy is intended to maintain the real value of wages and provide a minimum income floor across the labour market.

Impact on Businesses

For employers, the increase raises wage costs, particularly in sectors with a higher proportion of minimum wage roles such as retail, hospitality and social care.

Businesses may respond in different ways depending on their cost structure. Common approaches include adjusting prices, reviewing staffing levels, or seeking operational efficiencies. Some firms may absorb the higher costs without making immediate changes.

Sector Considerations

Labour-intensive sectors are more exposed to changes in minimum wage rates. Industry feedback suggests that some businesses are reassessing hiring plans or working hours in response to higher payroll costs.

The extent of these adjustments varies by firm size, margins and local market conditions.

Broader Context

Previous increases in the minimum wage have generally had limited effects on overall employment levels, according to Low Pay Commission analysis. However, outcomes can differ depending on wider economic conditions.

The April 2026 increase continues a longer-term policy direction of raising minimum pay levels in the UK.

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