Overview
- The government has set the National Living Wage at £12.71 per hour from April 1, 2026, a 4.1% increase following Low Pay Commission advice.
- Because the auto-enrolment earnings trigger has been frozen at £10,000 since 2014, the higher wage reduces the practical hours needed to qualify to about two days a week.
- The Office for National Statistics estimates 8.6 million people worked part-time in the UK in Q3 2025, underscoring the scale of potential new eligibility.
- Standard Life estimates suggest a minimum-wage worker doing 15 hours weekly could add about £818 to a pension in a year, rising to roughly £2,030 for full-time hours, with a 22-year-old over a full career potentially building around £208,000 in today’s terms.
- Standard Life’s Catherine Foot says higher pay boosts savings and access, while the reinstated Pension Commission is reviewing broader reforms for vulnerable groups with no rule changes announced.