The National Living Wage will rise by 4.1% from April 1 (Image: Getty)
An extra £900 annual pay boost will be hitting the bank accounts of millions of UK workers thanks to a new £12.71 rule from April.
The UK Government is increasing the National Living Wage by 4.1% from April 1, which will take hourly pay rates for workers aged 21 and over up from £12.21 to £12.71 per hour. The pay increase will benefit around 2.4 million people on low pay and will give full-time employees a gross annual earnings boost of £900. The National Living Wage applies to most workers, whereas the National Minimum Wage is the minimum amount an employer must pay per hour to all workers aged 21 or under.
But younger workers are also set to benefit from higher earnings from April as the National Minimum Wage rate will rise by 8.5%.
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From April 1, 18 to 20-year-olds will see their pay go up from £10 to £10.85 per hour, narrowing the gap with the National Living Wage.
The pay increase means a full-time worker in this age group will see an annual earnings boost of £1,500, marking further progress towards the Government’s goal of phasing out 18 to 20 wage bands and establishing a single adult rate.
Additionally, the National Minimum Wage for 16 to 17-year-olds and those on apprenticeships will rise by 6% from April 1, taking hourly rates from £7.55 to £8. According to the Government, the April 2026 increases will benefit 2.7 million young and older workers.
The increases, announced in November 2025, follow the Government’s acceptance in full of the recommendations made by the Low Pay Commission (LPC).
Speaking at the time of the recommendations last year, Baroness Philippa Stroud, LPC Chair, said: “The recommendations published today are a product of diligent study of the evidence, careful reflection and significant negotiation. Our advice balances the Government’s ambitions with the need to protect the economy and labour market, with rates that are fair and realistic.
“In our discussions this year with workers and employers alike, it has been clear that no one is having an easy time. Despite sustained real increases in the minimum wage, low-paid workers are still challenged by the cost of living crisis. At the same time, employers, particularly small businesses, are under real pressure, exacerbated by this April’s National Insurance changes.
“While GDP growth over the past year has been mixed and the labour market has softened, our judgement is that the recent NLW increases have not had a significant negative impact on jobs.“
The increase in the National Living Wage will ensure a real-terms pay rise for low-paid workers and will meet the Government’s aim to ensure the rate doesn’t drop below two-thirds of median earnings.
Meanwhile, the increase in the 18 to 20-year-old rate is a step towards alignment with the National Living Wage.
Announcing the boost to pay rates last year, HM Treasury said: “We are raising the National Living Wage and National Minimum Wage, meaning full-time workers on the National Living Wage see a rise of £900 a year, while full-time workers on the 18-20 National Minimum Wage rate will see a £1,500 rise.”
