The Government has confirmed significant wage increases for workers from 1 April 2026. The national living wage (NLW) will rise by 4.1%, reaching £12.71 per hour for those aged 21 and over. This increase will benefit around 2.4 million low-paid workers, adding £900 to the annual salary of a full-time worker.
Meanwhile, the national minimum wage (NMW) will rise by 8.5%, reaching £10.85 per hour for 18 to 20-year-olds. This will provide a £1,500 boost for full-time workers, further narrowing the gap with the NLW and progressing towards a unified adult rate. The NMW for 16 to 17-year-olds and apprentices will also increase by 6%, to £8 per hour.
While trade unions welcomed these pay rises, they will also add pressure on businesses, which are already burdened by the £24 billion increase in employers’ national insurance, effective from April 2025.
Paul Nowak, general secretary of the TUC, praised the wage increase as a positive step towards addressing the high cost of living. However, Rain Newton-Smith, CEO of the CBI, expressed concerns about the ongoing tax burden on businesses, warning that the economy risks stagnating if further short-term measures are taken without addressing long-term growth.
Talk to us about your business.
