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UK Sets April Minimum Wage Rise to £12.71 as Business Figures Warn of Fallout

Chancellor Rachel Reeves says the increases will support low earners facing persistent cost pressures.

Overview

  • From April 2026, the statutory hourly rate for workers aged 21 and over will increase to £12.71, a 4.1% rise from £12.21.
  • The minimum wage for 18- to 20-year-olds will rise 8.5% to £10.85, and the rate for 16- to 17-year-olds and apprentices will move to £8, up 6%.
  • The government says about 2.4 million workers will benefit, with a full‑time over‑21 worker seeing roughly £900 more a year before tax.
  • Local business leaders warn the changes could fuel inflation, reduce part-time and entry-level roles for young people, and strain employer budgets.
  • Low Pay Commission chair Baroness Philippa Stroud notes workers still face living‑cost pressures as many small firms also struggle with rising costs, including recent National Insurance changes.