The UK minimum wage is set for another rise in April 2026, and both employers and workers are watching closely. Each year, the government adjusts the National Minimum Wage (NMW) and National Living Wage (NLW) to keep up with economic conditions.
This upcoming change is expected to deliver a meaningful boost to low-income workers while also posing challenges for businesses managing payroll costs.
Why the Minimum Wage Is Increasing
The 2026 rise is part of the UK’s ongoing effort to align wages with the cost of living and ensure fair pay for all workers. Inflation, economic growth, and labour market trends have driven this increase.
The adjustment aims to reduce income inequality, improve living standards, and help employees better manage the rising costs of housing, utilities, and groceries.
Projected Rates for April 2026
While the final figures will be confirmed later, forecasts suggest a solid increase across all age groups. The National Living Wage for workers aged 21 and over is expected to climb significantly, alongside proportional rises for younger workers and apprentices.
| Worker Category | Current Rate (2025) | Projected 2026 Rate |
|---|---|---|
| Ages 21+ (National Living Wage) | £12.21 | £12.55 – £12.86 |
| Ages 18–20 | £8.60 | £8.90 – £9.15 |
| Under 18 | £6.40 | £6.60 – £6.80 |
| Apprentices | £6.10 | £6.30 – £6.50 |
These projected figures would see many workers earning between 30p to 50p more per hour, representing a significant pay rise over the year.
Impact on Workers
For employees, the April 2026 wage increase means:
- Higher take-home pay to better cover essentials.
- Greater financial stability for low-income households.
- Improved job satisfaction as wages move closer to a true living standard.
For full-time workers on the NLW, this could mean an annual increase of £600 to £1,000, depending on contracted hours.
Impact on Employers
For businesses, particularly in labour-intensive sectors like hospitality, retail, and social care, the wage increase will require careful financial planning. Employers should:
- Review payroll budgets to absorb higher wage costs.
- Communicate changes to staff early to maintain morale.
- Explore efficiency improvements or pricing adjustments to offset expenses.
While this may challenge some companies, higher wages can also lead to improved staff retention and productivity.
When the New Rates Take Effect
The new minimum wage and living wage rates will officially apply from 1 April 2026. Workers will see the increase reflected in their first pay period after this date.
Employers are legally required to ensure all staff are paid at or above the applicable minimum rate for their age category.
Preparing for the Change
- Employers should start budgeting now, assess staffing needs, and ensure payroll systems are ready to implement the new rates on time.
- Employees should review their payslips in April to confirm they are receiving the correct updated wage.
- Both parties should remain aware that future rises are likely as the government aims to keep pace with living costs.
The UK minimum wage forecast for April 2026 points to a meaningful increase that will benefit millions of workers and help address the rising cost of living.
Employers must prepare for higher payroll expenses, while employees can look forward to improved earnings. Planning ahead will ensure a smooth transition into the new pay structure and help both sides adapt to the evolving economic environment.
FAQs
When will the new minimum wage be implemented?
From 1 April 2026, with the increase reflected in the first pay period after that date.
How much could the National Living Wage be in 2026?
Forecasts suggest around £12.55 to £12.86 per hour for workers aged 21 and over.
Will younger workers also see increases?
Yes, workers under 21 and apprentices are also expected to receive proportional wage increases.