📈 Confirmed: New Minimum Wage Rates for April 2026

lansburyservices
Dec 17, 2025
2 min read

The Government has officially accepted the Low Pay Commission’s (LPC) recommendations for the National Minimum Wage (NMW) and National Living Wage (NLW) increases, set to take effect on 1st April 2026.

What are the new rates?

The latest update confirms a strategic shift toward a "single adult rate." While the main National Living Wage (21+) will see a modest 4.1% increase, younger workers are seeing much sharper rises as the Government moves to close the age-related pay gap.

The Confirmed 2026/27 Rates:

Category	2025/26 Rate	2026/27 Rate	Increase (%)
NLW 21+	£12.21	£12.71	4.1%
NMW 18-20 yr old rate	£10.00	£10.85	8.5%
NMW 16-17 yr old rate	£7.55	£8.00	6.0%
NMW apprenctice rate	£7.55	£8.00	6.0%
Accomodation Offset	£10.66	£11.10	4.1%

What does it mean for me?

For employees, this is a vital boost during the ongoing cost-of-living crisis. A full-time worker (37.5 hrs/week) on the National Living Wage will see their annual gross pay rise by approximately £977.

For employers, the 8.5% jump for 18–20-year-olds is the most significant takeaway. This is part of a multi-year pathway to eventually extend the full NLW to 20-year-olds (likely in 2027) and 18-year-olds shortly thereafter. While this promotes pay equity, there are growing concerns about the impact on youth unemployment and the increased financial pressure on sectors like retail and hospitality.

Our advice to you

Financial planning for the 2026/27 fiscal year needs to start now.

We recommend:

Audit Your Pay Scales: Don't just look at those on the minimum. As the "floor" rises, you may need to adjust the pay of supervisors and mid-level staff to maintain a fair "pay bridge" between roles.
Budget for the "Ripple Effect": Remember that a wage increase also increases your National Insurance contributions and pension auto-enrolment costs.
Review Youth Hiring Strategy: If your business model relies heavily on the 18–20-year-old bracket, model the 8.5% increase against your 2026 margins now to avoid surprises.
Focus on Productivity: With higher wage costs, ensuring your team is well-trained and efficient is more important than ever. High-quality onboarding can help ensure you get the best ROI from your increased investment in staff.