Heads up employers & business owners: Minimum Wage Changes from 1 April 2026

From 1 April 2026, the UK Government has confirmed increases to the National Living Wage and National Minimum Wage that all employers must apply in payroll. These changes form part of the annual statutory review and are important for budgeting and compliance.

New hourly rates from 1 April 2026:
– National Living Wage (age 21 and over): £12.71 (up from £12.21)
– National Minimum Wage (age 18–20): £10.85 (up from £10.00)
– Under 18 rate: £8.00 (up from £7.55)
– Accommodation offset: £11.10 per day (up from £10.66)

As a reminder, these are legal minimums. You must pay the updated rates on time from April. Even if you already pay above them, it’s essential to ensure your payroll systems are updated before month-end to remain compliant.

What this means for employers:
– Update payroll settings now
– Re-forecast labour costs for 2026/27
– Check contracts and pay scales across age bands

For many businesses, this is also a good opportunity to review wider pay structures—especially if you employ apprentices, younger workers, or staff on variable hours.

If you run payroll for others or manage a team with varying pay rates, now is the time to prepare ahead of your next pay run.

If you’d like support understanding how these changes affect your business—or want help ensuring your payroll is set up correctly – let’s chat.