Raise in wages for millions announced as minimum pay boost suggested – check if you qualify
The UK government is considering a significant increase in the national living wage, with the central estimate suggesting a rise to £12.71 per hour, a 4.1% increase from the current rate of £12.21. This increase would bring the national living wage closer to two-thirds of median earnings, as advised by the Low Pay Commission (LPC).
The LPC, which advises the government on changes to the national minimum wage and national living wage each year, has proposed this potential inflation-busting wage rise for 2026. The final recommendation will take into account economic conditions, business competitiveness, and employment impacts.
The proposed increase aligns with the recent 6.7% rise in the national living wage that took effect in April 2025. This rise saw millions of 18 to 20-year-olds experience a record 16.3% increase in their minimum wage.
The national minimum wage for 16 to 17-year-olds currently stands at £7.55 per hour. The government aims to make things fairer for younger workers by bringing their pay closer to the national minimum wage for older adults and eventually creating a single wage rate for adults and completely scraping "discriminatory" age bands.
Employers who fail to pay the minimum wage can face public "naming and shaming" and may even face criminal prosecution. The government has pledged to provide a living wage for workers and has been working towards ensuring fair wages without harming employment.
The LPC will make its annual recommendations to the government in October, and the final rate will be determined based on these recommendations and considerations of economic and labour market conditions. If the increase is approved, it will come into force in April 2026.
[1] Low Pay Commission: https://www.lowpaycommission.org.uk/ [2] Government announcement on national living wage increase: https://www.gov.uk/government/news/national-living-wage-to-increase-in-april-2026 [3] National Minimum Wage rates: https://www.gov.uk/national-minimum-wage-rates [4] BBC News: https://www.bbc.co.uk/news/business-63568447
- The proposed wage rise for the national living wage in 2026, according to the Low Pay Commission, could influence personal-finance decisions for many working adults in the UK.
- As the government pursues fairer wages for workers, the potential impact on business finances is a crucial factor that the Low Pay Commission will consider in its annual recommendations for changes to the national minimum wage and national living wage.
