FEATURED News13 Nov 2026
Microsoft service outage – 13 November.
We’re currently affected by the Microsoft service outage, which is disrupting Outlook. This means emails to and from our team may be delayed or not received while the issue persists.
Articles
Minimum wage rates are set to increase from 1 April 2026, with younger workers and apprentices benefiting the most. Employees will welcome the uplift, but many employers may struggle with the additional cost, especially those in the hospitality sector.
Wage increases
Following high increases in April 2024 and April 2025, the minimum wage rate for employees aged 21 and over has increased 22% since 2024. Current and future rates from 1 April 2026 are:
| Age | Current rate | From 1 April 2026 | Percentage increase |
| National Living Wage (NLW) 21 and over |
£12.21 | £12.71 | 4.1% |
| National Minimum Wage (NMW) 18 to 20 |
£10.00 | £10.85 | 8.5% |
| NMW Apprentices and those under 18 | £7.55 | £8.00 | 6.0% |
Apprentices over 19 who have completed the first year of their apprenticeship are entitled to the rate for their age.
The new rates will have a significant effect on take-home pay. From April 2026, a full-time worker aged 21 and over will see their annual gross pay increase by around £1,000. The annual increase is more than £1,600 for someone aged 18 to 20.
When making their recommendations, the Low Pay Commission took into account stronger-than-expected wage growth, which was 4.6% annually up to September 2025.
Mitigating the effects
Forward planning is key to managing the minimum wage rate increases. For example:
If price increases are become necessary, these should be clearly communicated as early as possible to customers. The rates of National Minimum/Living Wage can be found here.
THE AUTHOR
Senior Manager, Payroll
More & Other Musings
View all related contentFEATURED News13 Nov 2026
We’re currently affected by the Microsoft service outage, which is disrupting Outlook. This means emails to and from our team may be delayed or not received while the issue persists.
NEW Guides & Publications11 Nov 2026
In this edition of Alliotts Focus we look at; The Key Business Outcomes from Budget 2026, Making Tax Digital, Pension Inheritance Traps, and Taxing Crypto Assets
NEW Articles5 Nov 2026
What the increase to the Trading Allowance means in practice.
NEW Articles4 Nov 2026
Relocating to Dubai doesn't always mean you're free from UK tax obligations. We explain why UK expats in Dubai may still need a UK accountant
NEW Articles2 Nov 2026
First year allowances are set to end at the end of the 2026/27 tax year, creating a cliff edge.