From April 1, 2026, the UK's National Living Wage will increase by 4.1% to £12.71 per hour for workers aged 21 and over, delivering an annual boost of £900 for full-time employees. The rise, announced in the November 2025 budget, is expected to benefit around 2.4 million low-paid workers.
Chancellor Rachel Reeves said she accepted recommendations from the Low Pay Commission to ensure lower earners are 'properly rewarded'. The National Minimum Wage for 18-20 year olds will jump by 8.5% to £10.85 per hour, providing a £1,500 annual increase for full-time workers. Rates for 16-17 year olds and apprentices will rise 6% to £8 per hour.
However, the hospitality sector has criticised the wage hikes, alongside increased national insurance costs, warning they will lead to business closures and job losses. Kate Nicholls, chair of UKHospitality, said: 'Increases to minimum wage rates are yet another cost for hospitality businesses to balance, at a time when they are already being taxed out.' She added that businesses have 'reached their limit' and will pass costs to consumers, fuelling inflation.
