Overview
- From April 2026, the National Living Wage will be £12.71 for workers aged 21 and over, with rates set at £10.85 for 18–20s and £8 for 16–17s and apprentices.
- The Government says around 2.7 million workers will benefit, with a full-time worker on the National Living Wage gaining about £900 a year and an 18–20-year-old on the minimum wage about £1,500.
- Rachel Reeves confirmed she has accepted the Low Pay Commission’s recommendations as part of a longer-term move toward a single adult rate.
- Unions praised the rise, while business groups and recruiters warned of higher payroll costs, likely price pass‑through and risks to youth hiring, echoing inflation concerns raised by central bank officials.
- The voluntary Real Living Wage remains higher at £13.45 across the UK and £14.80 in London, highlighting the gap with the legal minimum.