Minimum wage to increase by 4.1% — bigger gains for young workers

The government has confirmed that the national minimum wage for workers aged 21 and over will rise by 4.1 percent, taking effect from April 2026. The new rate will be £12.71 per hour, up from the current £12.21. Younger workers and apprentices will see proportionally larger increases. Workers aged 18 to 20 will have their hourly pay rise from £10.00 to £10.85, representing an 8.5 percent increase, while 16- and 17-year-olds, along with apprentices, will receive a 6 percent increase, bringing their rate to £8.00 per hour.

Government estimates suggest that approximately 2.4 million workers aged 21 and over, along with hundreds of thousands of younger and apprentice workers, will benefit from these changes. The pay rise follows recommendations from the Low Pay Commission and aims to help low-income workers cope with ongoing cost-of-living pressures. A government spokesperson noted that many workers have struggled to make ends meet, and the increase is intended to ensure they are properly rewarded for their labour.

Trade unions welcomed the announcement, with Usdaw describing the rise as overdue and highlighting its role in reducing the wage gap between youth and adult rates. For full-time workers on the new adult rate, annual earnings before tax could increase by roughly £900, while younger full-time workers on the 18–20 rate could see an annual boost of around £1,500.

However, some business groups cautioned that higher labour costs could be passed on to consumers, leading to price increases, particularly in sectors such as hospitality and retail. Economists and youth-employment advocates also expressed concern that larger increases for young workers might discourage employers from hiring inexperienced staff, potentially worsening youth unemployment.

The upcoming rise reflects a continued effort to narrow the wage gap between younger and adult workers and may mark a step toward a more unified adult minimum wage in the future. While the increase offers tangible benefits to low-paid and young workers, its long-term impact will depend on how employers respond to higher payroll costs and potential shifts in hiring practices. The announcement comes ahead of the wider government budget, underlining the central role of wage policy in economic and social planning.