Increases to the National Minimum Wage (effective from 1 April 2026)

Articles  |   27 November 2025

Following the Chancellor's Autumn 2025 Budget, James Lopes, a Legal Assistant in the Employment team, explains the changes to the National Minimum Wage and when the rate increases are due to come into effect.

What changes have been made to the National Minimum Wage rates?

On 25 November 2025, the Government confirmed new minimum wage rates will be effective from the 1st of April 2026.

  • National Living Wage – aged 21 and over: £12.71 per hour (a 4.1% increase from £12.21)

  • 18–20-year-old rate: £10.85 per hour (an 8.5% increase from £10.00)

  • 16-17-year-old rate: £8.00 per hour (a 6% increase from £7.55)

  • Apprentice rate: £8.00 per hour (a 6% increase from £7.55)

  • Accommodation offset: £11.10 per hour (a 4.13% increase from £10.66)

It is estimated that the increase will benefit around 2.7 million workers. Many view this as a significant boost for a large portion of the population. For example, someone aged 21 or over working full-time on the National Minimum Wage (37.5 hours per week) will earn approximately £900 more per year as a result of the changes.

However, critics have expressed concerns about rising cost pressures and the potential impact on hiring practices. The chair of a UK hospitality trade body has said the industry has reached their limit with absorbing these additional costs, declaring that they will simply have to be passed through to the consumer. This raises the question of whether the increase will achieve its intended impact, particularly when weighed against ongoing inflationary pressures

If you have any questions regarding the changes coming to the National Minimum Wage from April next year, please contact a member of our employment team on 020 8290 0440.

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