UK Government Approves 4.1% Rise in National Minimum Wage for 2026
Main wage rate to increase to £12.71 an hour from April, benefiting 2.4 million workers as broader cost-of-living pressures persist
The UK government confirmed a 4.1 per cent increase in the national minimum wage from April 2026, raising the main rate to £12.71 per hour for workers aged 21 and over.
The announcement, made ahead of the upcoming budget, applies to around 2.4 million workers, while younger employees and apprentices will receive larger increases of between 6.0 per cent and 8.5 per cent.
Finance minister Rachel Reeves said the increase was essential to “properly reward” low-income workers during a period when living costs remain the foremost concern for many households.
The move follows a 6.7 per cent rise earlier this year and reflects the government’s ongoing objective of aligning the minimum wage with two-thirds of median hourly earnings.
While the independent Low Pay Commission supported the rise, noting that past increases have not materially harmed employment levels, key business sectors voiced caution.
The hospitality industry warned that higher wage costs would likely be passed on to consumers and could weaken opportunities for younger or less-experienced workers.
The wage rise coincides with a backdrop of persistent inflation, elevated unemployment and a central bank warning that wage growth above roughly 3 per cent may hinder the return of inflation to target levels.
The government indicated that the measure forms part of a broader package in the forthcoming budget aimed at balancing fairness for workers with economic sustainability.
The announcement, made ahead of the upcoming budget, applies to around 2.4 million workers, while younger employees and apprentices will receive larger increases of between 6.0 per cent and 8.5 per cent.
Finance minister Rachel Reeves said the increase was essential to “properly reward” low-income workers during a period when living costs remain the foremost concern for many households.
The move follows a 6.7 per cent rise earlier this year and reflects the government’s ongoing objective of aligning the minimum wage with two-thirds of median hourly earnings.
While the independent Low Pay Commission supported the rise, noting that past increases have not materially harmed employment levels, key business sectors voiced caution.
The hospitality industry warned that higher wage costs would likely be passed on to consumers and could weaken opportunities for younger or less-experienced workers.
The wage rise coincides with a backdrop of persistent inflation, elevated unemployment and a central bank warning that wage growth above roughly 3 per cent may hinder the return of inflation to target levels.
The government indicated that the measure forms part of a broader package in the forthcoming budget aimed at balancing fairness for workers with economic sustainability.
