Back to all posts

Articles

National Living and Minimum Wages go up again

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.

8 Dec 2025

By Shahbaan Dholoo

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:

  • Review staffing and working patterns, while introducing more flexible working arrangements.
  • Consider automating tasks. Where this is not possible, then investment in staff training will hopefully improve productivity and efficiency. With training, staff should be able to cover a wider range of roles, making the workforce more adaptable during busy periods.
  • Even small changes, such as updating the way in which stock is controlled, can soon add up to a meaningful time saving.

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.

Related content

Share:
Key information +-

THE AUTHOR

More & Other Musings

View all related content

NEW Articles11 May 2026

Penalties for late VAT payments

More than 580,000 traders were penalised for late payment of VAT last year, representing a quarter of businesses registered for VAT. A sure sign that the tougher penalty regime introduced in 2023 is hitting cash-strapped businesses.

By Zaklina Kaehler

VIEW MORE

NEW Articles11 May 2026

Close company directors asked to reveal more

Directors of close companies will have to provide more details than previously when completing their self-assessment tax returns for 2025/26. In the longer term, close companies themselves will also be required to provide significantly more detailed information.

By David Gibbs

VIEW MORE