2026 National Minimum Wage Announcement
The Low Pay Commission (LPC) has published its analysis of the April 2026 uprating. The report sets out likely impacts on pay, household incomes and jobs.
New rates from 1 April 2026
The LPC recommended new National Minimum Wage and National Living Wage rates in October 2025. These take effect on 1 April 2026 under the 2026 National Minimum Wage Announcement.
| Rate | Hourly | Annual increase (£) | Annual increase (%) |
|---|---|---|---|
| National Living Wage (21+) | £12.71 | £0.50 | 4.1 |
| 18-20 Year Old Rate | £10.85 | £0.85 | 8.5 |
| 16-17 Year Old Rate | £8.00 | £0.45 | 6.0 |
| Apprentice Rate | £8.00 | £0.45 | 6.0 |
| Accommodation Offset | £11.10 | £0.44 | 4.1 |
Real wages and inflation
The LPC expects the NLW rise to deliver a real terms increase by March 2027. CPI forecasts for the minimum wage year sit around 1.8–2.0 per cent.
Since 2009, the adult minimum wage real value rose by over 75 per cent. The LPC notes the Middle East conflict could alter forecasts.
Macroeconomic and inflationary effects
The Commission judges NLW uplifts make a small contribution to the aggregate wage bill. Last year’s increase added 0.1–0.5 percentage points to wage-bill growth.
That increase contributed 0.1–0.2 percentage points to overall inflation. The Bank of England sees the NLW effect as negligible this year.
Household incomes
Take-home effects vary with tax, benefits and hours worked. The Government will raise the Universal Credit standard allowance by 6.2 percent in April 2026.
That UC rise will boost incomes for many NLW recipients above the 4.1 percent pay rise. A single full-time NLW worker gains about 3.3 percent or £11.90 weekly.
A couple with two school-aged children, where one adult works at the NLW, gets at least a 4.2 percent take-home rise.
Coverage and jobs affected
The LPC projects total jobs covered by the NMW/NLW will fall slightly in April 2026. Coverage is measured as jobs paid up to five pence above the rate.
| Rate group | April 2025 share (%) | April 2025 jobs (thousands) | April 2026 share (%) | April 2026 jobs (thousands) |
|---|---|---|---|---|
| NLW (21+) | 6.1 | 1,756 | 5.9 | 1,698 |
| 18-20 | 15.1 | 162 | 18.2 | 195 |
| 16-17 | 21.8 | 68 | 22.9 | 71 |
| Apprentice | 17.2 | 32 | 17.6 | 33 |
| Total | 6.6 | 2,019 | 6.5 | 1,997 |
Youth rates and employment effects
The 18-20 rate rose by 8.5 percent to £10.85. It now stands at 85 percent of the NLW.
That rate follows three consecutive years of larger increases than the NLW. The LPC expects 18-20 coverage to reach about 18.2 percent, roughly 195,000 jobs.
Sectors and regional patterns
The report finds no robust evidence that higher youth rates caused youth employment declines. Young worker outcomes track sector trends instead.
Hospitality employment for 18-20 year olds remains above pre-pandemic levels. Retail employment for that age group has fallen more sharply.
Geographically, youth employment fell most in areas with lower youth coverage. London saw large falls despite low youth coverage.
Remit and indicative rates for 2027
The Government published the LPC remit on 16 March 2026. It again names two-thirds of median hourly earnings as the key reference point.
The LPC estimates the 2027 NLW needed to meet that benchmark lies between £13.02 and £13.34. The central estimate is £13.18.
That range implies a 2.4–5.0 percent increase over the current NLW. Forecast uncertainty and global events could change these figures.
Evidence gathering and next steps
The LPC will publish a written call for evidence and continue business and worker visits across the UK. Locations are chosen by coverage and employment levels.
The Commission invites submissions and meetings. Interested parties can contact the LPC at [email protected].
For coverage of this report and related analysis, visit Filmogaz.com for further updates and commentary.
