The Government has confirmed the new National Living Wage (NLW) and National Minimum Wage (NMW) rates that will come into force on 1 April 2026, accepting in full the recommendations of the Low Pay Commission.
The increases will affect millions of workers across the UK and place important compliance obligations on employers in all sectors.
New National Minimum Wage Rates from April 2026
The updated hourly rates are as follows:
National Living Wage (ages 21 and over):
Increase from £12.21 to £12.71 per hourNational Minimum Wage (ages 18–20):
Increase from £10.00 to £10.85 per hourNational Minimum Wage (ages 16–17):
Increase from £7.55 to £8.00 per hourApprentice Rate:
Increase from £7.55 to £8.00 per hour
(applicable to apprentices under 19, or those aged 19 and over in the first year of their apprenticeship)
In addition, the accommodation offset will increase from £10.66 to £11.10 per day for each day during the pay period that accommodation is provided.
What This Means for Employers
The Government has emphasised that these increases are intended to support low-paid workers while reflecting economic conditions. Employers must ensure that payroll systems, employment contracts and salary structures are updated in time for 1 April 2026.
Failure to comply with minimum wage legislation can result in:
arrears of pay owed to workers;
financial penalties imposed by HM Revenue & Customs (HMRC); and
public naming and reputational damage.
Employers should also be mindful that certain deductions, working time arrangements and benefits in kind (such as accommodation) can affect whether the minimum wage is being paid correctly.
Q&A: National Minimum Wage Changes Explained
What is the National Living Wage?
The National Living Wage is the statutory minimum hourly rate payable to workers aged 21 and over.
When do the new rates take effect?
The new NLW and NMW rates apply from 1 April 2026.
Who qualifies for the apprentice rate?
The apprentice rate applies to apprentices under 19, and to apprentices aged 19 or over during the first year of their apprenticeship.
What is the accommodation offset?
The accommodation offset is a daily amount that employers can count towards minimum wage pay where accommodation is provided to workers.
What should employers do now?
Employers should review pay rates, contracts, payroll systems and working practices well in advance of April 2026 to ensure compliance.
Contact Us
Keeping pace with changes to employment law is essential for employers. Our Employment Law solicitors advise businesses on minimum wage compliance, workforce planning, payroll audits and HMRC investigations.
If you would like advice on preparing for the 2026 National Minimum Wage increases or reviewing your employment practices, contact Willett & Co Solicitors today for expert guidance.
