National Minimum Wage
Alongside last week’s budget, the Government announced the increases to national minimum wage rates to take effect from 1 April 2026.
| Current rate | From 1 April 2026 | |
|---|---|---|
| National Living Wage (21+) | £12.21 | £12.71 |
| 18-20 year old rate | £10.00 | £10.85 |
| 16-17 year old rate | £7.55 | £8.00 |
| Apprentice rate | £7.55 | £8.00 |
| Accommodation offset | £10.66 | £11.10 |
These increases were recommended by the Low Pay Commission, following its remit to take into account the cost of living and inflation forecasts, as well as the Government’s commitment to ‘narrow the gap’ between the NLW and NMW.
The rate of increase for 18-20 year olds is proportionately much higher at 8.5%, which will impact those sectors employing a larger volume of this age group, including hospitality and retail. Employers should start reviewing pay structures and benefits and plan for offsetting the increased payroll costs in advance of the increase taking effect from 1 April 2026.
Weekly statutory payments
The Government has also now announced the proposed increases to various weekly statutory payments, also taking effect from April 2026.
| Current rate | From April 2026 | |
|---|---|---|
| Statutory Sick Pay (SSP) | £118.75 | £123.25 |
| Statutory maternity pay and maternity allowance; statutory adoption, paternity, shared parental, neonatal care and parental bereavement pay | £187.18 | £194.32 |
| Lower earnings limit (threshold for qualifying for statutory payments) | £125 (£30 for maternity allowance) | £129 (£30 for maternity allowance) |
The exact dates for these payments to take effect will be confirmed once the necessary Order is laid before Parliament.
Key Contacts
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at December 2025.