Here are all the new pay changes coming to the UK in April

The UK is set to implement significant increases to its National Living Wage (NLW) and National Minimum Wage (NMW) rates starting 1 April, providing a pay boost to millions of low-paid workers amid ongoing cost-of-living pressures.

The changes, announced by the government in late November 2025 and based on recommendations from the independent Low Pay Commission (LPC), aim to support wage growth while balancing business impacts. The government accepted the LPC’s advice in full.

Here are the new hourly rates taking effect from April 1, 2026 (compared to current 2025 rates):

National Living Wage (ages 21 and over): £12.71 (up 50p or 4.1% from £12.21)
Ages 18 to 20: £10.85 (up 85p or 8.5% from £10.00)
Ages 16 to 17: £8.00 (up 45p or 6.0% from £7.55)
Apprentice rate (applies to apprentices under 19, or those 19+ in their first year of apprenticeship): £8.00 (up 45p or 6.0% from £7.55)

The accommodation offset, the daily amount employers can deduct from pay for providing accommodation, will also rise to £11.10 per day.

These adjustments are expected to benefit around 2.7 million workers, according to government estimates, with younger employees seeing some of the largest percentage gains. The NLW continues its trajectory toward aligning closer to two-thirds of median earnings, a target set in previous policy frameworks.

Employers must update payroll systems ahead of the first pay reference period starting on or after April 1, 2026. Failure to comply risks enforcement action from HMRC, including potential naming and shaming or penalties.

Advisory firms like RSM UK have urged businesses to conduct final compliance checks, particularly around salary sacrifice schemes, deductions, working time records, and any arrangements that could inadvertently push pay below the new minima.

Related statutory changes around the same time include expansions to Statutory Sick Pay (SSP), such as day-one entitlement and removal of the three-day waiting period in some contexts, alongside the launch of a new Fair Work Agency to strengthen enforcement.

Note that these statutory rates differ from the voluntary Real Living Wage, set independently by the Living Wage Foundation, which is higher – rising to £13.45 across most of the UK and £14.80 in London from around the same period – and reflects a more comprehensive calculation of living costs.

Businesses in low-margin sectors such as retail, hospitality, and social care may face increased pressure on wage bills, though the increases are more moderate than in some prior years. The government has emphasized that the rises support fair pay without derailing economic recovery.