National minimum wage: draft 2026 increases published

New rates published

From 1 April 2026, the national living wage (for workers aged 21 and over) will increase to £12.71. The 18–20 rate will rise to £10.85, the 16–17 and apprentice rates to £8.00, and the accommodation offset to £11.10.

The Low Pay Commission’s report highlights the continued upward pressure on minimum wage rates, taking into account labour market conditions, living costs and median earnings. It also reiterates a longer-term intention to reduce the age threshold for the national living wage to 20 from 2027, with a possible further reduction to 18 in later years, subject to economic conditions.

Next steps for employers

Employers should review pay structures, salary sacrifice arrangements, deductions and working time calculations to ensure compliance from April 2026. As well as liability for arrears and financial penalties, underpayment carries a reputational risk, as HMRC continues to publicly name employers found to be in breach of minimum wage requirements.

For more information or advice, please contact Eleanor Searle in our Employment team.