The Government has announced that it has accepted the Low Pay Commission’s (LPC) new recommended rates of National Minimum Wage (NMW) and National Living Wage (NLW), applicable from 1 April 2026.
The new rates will be:
· Age 21+ (NLW) - £12.71 per hour (up from £12.21)
· 18 - 20 year olds - £10.85 per hour (up from £10)
· 16 - 17 year olds and apprentices under 19 or in their first year - £8 per hour (up from £7.55)
The new rates will have a significant effect on take-home pay. For example, from April 2026, those on NLW working 37.5 hours per week will see an increase in their annual gross pay of £977.
What will the national living wage rate be in 2026?
In response to the Government’s ambition to move towards a single rate of NLW for those aged 18 and over by the end of this Parliament, the 18–20 rate has increased, bringing it closer to the NLW rate. In contrast, the NLW rate sees the second smallest increase since it was first introduced in 2016, at 4.1%. This is part of the LPC’s proposed pathway, subject to economic conditions and any changes to government policy, for the NLW to be extended to 20-year-olds in 2027 and again to 18–19-year-olds in 2028 or 202.
Speaking on the recommendations, Baroness Philippa Stroud, Chair of the LPC, said: “The recommendations published today are a product of diligent study of the evidence, careful reflection and significant negotiation. Our advice balances the government’s ambitions with the need to protect the economy and labour market, with rates that are fair and realistic.”
What records do I have to keep to show I have paid the minimum wage?