National Living Wage Rises to £12.21 as April Changes Take Effect

Around three million workers on the lowest rates of pay received a significant hourly pay increase on 1 April 2026 as the National Living Wage rose to £12.21 — an increase of 6.7 percent on the previous year’s rate. The adjustment, the largest in cash terms since the National Living Wage was introduced, represents the latest step in the government’s stated commitment to raising the floor of pay across the UK labour market.

The 6.7 percent uplift substantially exceeded the rate of consumer price inflation, which was running at around three percent at the time the government set the new rate. That means workers directly affected by the floor rate will, in real terms, be better paid than they were in the previous year — a meaningful improvement for households concentrated at the bottom of the wage distribution.

The increase applies to all workers aged 21 and over, with separate rates for workers aged 18 to 20 and for those under 18 also rising by comparable percentages. The apprentice rate was also uplifted, following sustained campaigning by training providers and employers who had argued that the gap between the apprentice rate and the adult minimum was deterring take-up of formal apprenticeship programmes.

Employer organisations, while acknowledging the benefit to workers, raised concerns about the cumulative cost impact of rising minimum wages in an environment of high energy prices and subdued consumer demand. The British Retail Consortium noted that the increase would add hundreds of millions of pounds to the payroll costs of the retail sector alone, contributing to decisions by some employers to limit hours, reduce headcount or accelerate automation investment.

The Low Pay Commission, which advises the government on the appropriate level of the minimum wage, confirmed it would continue to monitor labour market conditions and produce recommendations for the 2027 rate during the second half of 2026.