What’s Changing with the National Living Wage?
Big changes might be coming to paychecks in the UK. The Low Pay Commission (LPC) has put out a new central estimate for the National Living Wage—it could go up to £12.71 an hour in April 2026 for everyone aged 21 and over. Right now, the rate is £12.21, so this new projection means someone could earn about 50p more an hour, or roughly £20 more on a 40-hour week. This 4.1% jump isn’t just a number plucked from thin air—it’s based on pay growth and predictions for the coming years. But keep in mind, things like inflation and how the economy holds up between now and 2026 could nudge that final figure up or down. The lowest and highest estimates from the LPC range from £12.55 to £12.86, so there’s still some wiggle room.
But it’s not just about folks over 21. The LPC is now deciding if it’s time to ditch the separate, lower minimum wage for younger adults. Currently, if you’re between 18 and 20, your minimum wage sits at £10. Those under 18 or apprentices in their first year get £7.55. The commission has two options on the table to raise the younger workers' rate so it matches the 21+ minimum wage. One is to narrow the gap over two years, which would call for double-digit percentage increases—around 11-15% jumps each year. The slower plan would take four years, and see annual bumps of 5-9% until everyone is earning the same by 2029.
Why Bump Up the Wage Now?
This whole review is happening because the cost of living keeps climbing. Even though the minimum wage saw a nice increase in April 2024, daily essentials aren’t getting cheaper. The government is under pressure to make sure wages don’t fall behind. At the same time, UK employers are worried—especially smaller shops and hospitality businesses. If wage bills climb too fast, some fear it could spell layoffs or fewer new hires just when the economy needs a boost.
The LPC’s best guess for wage growth this year is 5.1%—so future pay rises seem likely. Still, the commission is watching the economy’s ups and downs closely. They want to avoid setting a minimum wage so high that it backfires for young people trying to snag a job, or for small business owners already squeezed by higher energy and supply costs.
Here’s exactly where things stand now:
- £12.21 for workers 21 and up
- £10 for those aged 18-20
- £7.55 for under 18s or new apprentices
The new proposals could see wage rates for 18-20-year-olds sprint up by as much as £1.50 in just two years. That’s a big step for anyone trying to cover rent or save up during those tricky early adult years.
Still, these numbers aren’t set in stone. The government’s call, based on the LPC’s advice due out later this year, will lock in the actual wage levels for April 2026. Businesses and workers alike are bracing for the impact—some will cheer, some will worry. Either way, minimum wage debates are far from over in the UK.