Overview
- From April 2026, the over‑21 rate rises to £12.71, 18–20s to £10.85, and 16–17s and apprentices to £8, with the accommodation offset increasing to £11.10.
- The government estimates roughly 2.4 million workers will benefit, with a typical full‑time over‑21 employee gaining about £975 over the year.
- The Treasury describes the package as a balance between fair pay and business affordability, and the Low Pay Commission says past rises have not shown a significant negative impact on employment.
- Hospitality and business groups warn higher wage bills will be passed to consumers and could curb hiring, with some executives predicting fewer entry‑level and part‑time roles or inflationary pressure.
- The Resolution Foundation calls the 18–20 uplift "unnecessarily big" with potential NEET risks, while the TUC backs larger gains for young workers as youth rates are phased out.