Major wage changes from April 2026 that will affect millions of workers in England

Around 2.7 million workers will benefit from the changes

Millions of the UK’s lowest-paid workers are set for a significant earnings boost starting April 1, as the new National Living Wage and National Minimum Wage rates take effect.

The increases – originally announced in the Autumn Budget – aim to assist households struggling with the ongoing cost-of-living crisis, though industry leaders warn the move could fuel further inflation.

The primary National Living Wage for workers aged 21 and over will climb to £12.71 per hour, a 4.1% increase. According to Treasury figures, this will result in a gross annual pay rise of approximately £900 for a full-time employee.

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A more dramatic shift is coming for younger workers, as the Government moves toward its goal of a single adult wage rate. Those aged 18–20 will see their pay jump by 8.5%, bringing their hourly rate to £10.85.

Here is a full breakdown of the new rates coming into effect next month:

• National Living Wage (21 and over): £12.71 per hour – up 50p
• Rate for age 18-20: £10.85 per hour – up 85p
• Rate for age 16-17: £8.00 per hour – up 45p
• Apprentice Rate: £8.00 per hour – up 45p

Chancellor Rachel Reeves defended the hikes, stating that she accepted the Low Pay Commission’s recommendations to ensure workers are “properly rewarded”.

“I know that the cost of living is still the number one issue for working people,” the Chancellor noted during her announcement. “Too many people are still struggling to make ends meet, and that has to change”.

While the news is a victory for labour groups, the hospitality and retail sectors have expressed grave concerns. Business owners argue that the combination of higher wages and increased National Insurance contributions is pushing many firms to the brink of closure.

Kate Nicholls, chair of UKHospitality, warned that businesses have reached their limit for absorbing costs. “These additional costs make action to reduce hospitality’s tax burden even more important,” she stated, adding that most businesses will have no choice but to pass these costs onto consumers, potentially driving up prices at restaurants, pubs, and hotels.

The wage increase arrives at a complex moment for the UK economy.

With the Bank of England currently holding interest rates at 3.75% and energy bills remaining a significant concern for many as long as the conflict in the Middle East continues, the extra £900 to £1,500 in annual earnings will provide a vital lifeline for the 2.7 million people affected.