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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.

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