From April, the National Living Wage will rise by 4.1% to £12.71 an hour for eligible workers aged 21 and over.
12:46, 16 Mar 2026Updated 19:26, 16 Mar 2026
From April, the National Living Wage will rise by 4.1% to £12.71 an hour for eligible workers aged 21 and over.
Pay rates are changing from April – with a new National Minimum Wage 2026 for workers. From April, the National Living Wage will rise by 4.1% to £12.71 an hour for eligible workers aged 21 and over.
Full-time workers on the National Living Wage will see a rise of £900 a year, while full-time workers on the 18-20 National Minimum Wage rate will see a £1,500 rise.
Labour Party Chancellor Rachel Reeves said she had accepted recommendations from the Low Pay Commission so that those on low incomes are “properly rewarded”.
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Ms Reeves said: “I know that the cost of living is still the number one issue for working people and that the economy isn’t working well enough for those on the lowest incomes.
“Too many people are still struggling to make ends meet, and that has to change. That’s why today I’m announcing that we will raise the National Living Wage and also the National Minimum Wage, so that those on low incomes are properly rewarded for their hard work.
“These changes are going to benefit many young people across our country, getting their first job.”
Under government rules, people classed as ‘workers’ must be at least school leaving age to get the National Minimum Wage. They must be 21 or over to get the National Living Wage.
Contracts for payments below the minimum wage are not legally binding. The worker is still entitled to the National Minimum Wage or National Living Wage.
Kate Nicholls, who chairs UKHospitality, said: “Increases to minimum wage rates are yet another cost for hospitality businesses to balance, at a time when they are already being taxed out.
“These additional costs make action at the Budget to reduce hospitality’s tax burden even more important, especially if businesses are expected to sustain this level of annual wage increase.
“Hospitality businesses have reached their limit of absorbing seemingly endless additional costs. They will simply all be passed through to the consumer, ultimately fuelling inflation.”