Minimum wage set for significant increase in April 2026

Rachael Reeves has confirmed in her Autumn Budget that the National Minimum and Living Wage will rise significantly from April 2026.

The new rates will apply from 1 April 2026 and are expected to benefit around 2.5 million workers across the country. Reeves described the wage increase as part of the Government’s commitment to “reward hard work and ease the pressure on household budgets”.

New rates

21+ (NLW)

• Current rate (2024-25): £12.21/hr
• New rate (April 2026): £12.71/hr
• % increase: 4.1%

18-20

• Current rate (2024-25): £10/hr
• New rate (April 2026): £10.85/hr
• % increase: 8.5%

16-17

• Current rate (2024-25): £7.55/hr
• New rate (April 2026): £8/hr
• % increase: 6%

Apprentices

• Current rate (2024-25): £7.55/hr
• New rate (April 2026): £8/hr
• % increase: 6%

The largest change is for those aged 18-20 (an increase of 8.5%). This is a further step towards Labour’s commitment to eventually removing this band and introducing a single flat rate for all adults.

For employers, these increases represent both an opportunity and a challenge. Whilst higher wages can support recruitment and retention, particularly in industries facing a labour shortage, the uplift will add to overall payroll costs at a time when many businesses are already facing inflationary pressures and rising overheads. Employers are advised to review their staffing budgets and prepare to comply with the new statutory rates from April 2026.

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If you have any questions or concerns about the updates provided above, please contact a member of our Employment Law team. You can use our online enquiry form or call 0330 191 5713.