The changes will come into effect from next April
The Government has announced increases for all rates of the National Minimum Wage, including the National Living Wage, which will come into effect from next April.
The announcement comes less than 24 hours before the Chancellor is scheduled to deliver her Autumn Budget, which some publications have predicted could be ‘one of the toughest in living memory’.
Rachel Reeves has accepted recommendations from the Low Pay Commission so that those on low incomes are “properly rewarded” for their work.
The new rates hike means that the a full-time worker will see an annual earnings increase of £1,500 from 2026.
The latest increases are part of a wider government ambition to phase out 18 to 20 wage bands and establishing a single adult rate.
The new rates which will come into effect from 1 April, 2026 are as follows:
- National Living Wage – 4.1% increase to £12.71 an hour for eligible workers aged 21 and over.
- 18-20 Year Old Rate – 8.5% increase to £10.85 an hour.
- 16-17 Year Old Rate – 6% increase to £8 an hour.
- Apprentice Rate – 6% increase to £8 an hour.
Speaking after the announcement, Ms Reeves said: “I know that the cost of living is still the number one issue for working people and that the economy isn’t working well enough for those on the lowest incomes.
“Too many people are still struggling to make ends meet, and that has to change.”
She added: “That’s why today I’m announcing that we will raise the National Living Wage and also the National Minimum Wage, so that those on low incomes are properly rewarded for their hard work.
“These changes are going to benefit many young people across our country, getting their first job.”
The increases will benefit around 2.7 million young and older workers.
General secretary of the Trades Union Congress, Paul Nowak, said: “The Government is delivering on its promise to make work pay.
“With living costs stubbornly high, an above-inflation pay rise will make a real difference to the lowest paid.”
Mr Nowak added: “Putting more money in people’s pockets is good for workers and good for the economy as it goes straight back into our high streets and local businesses.”
