National Minimum & Living Wage 2026 – What Employers Need to Know

The Government has published its remit for the Low Pay Commission (LPC), setting out the framework for minimum wage recommendations that will apply from April 2026. This update confirms a continued focus on ensuring the National Living Wage (NLW) remains at least two-thirds of UK median earnings while phasing out the 18–20 age band, moving towards a single adult rate.

A significant rise on the horizon

Employers should prepare for another significant increase. The LPC’s latest projections suggest the NLW (for workers aged 21 and over) could rise to between £12.55 and £12.86 per hour in April 2026, with a central estimate of £12.71.

That’s around a 4.1% rise from the April 2025 rate (£12.21) – equivalent to an extra 50p per hour. Notably, these estimates are higher than previous forecasts due to stronger-than-expected wage growth in 2025.

What will influence the final rate?

The LPC has acknowledged the challenge of predicting the exact level, given current economic volatility. Its final recommendations (due by October 2025) will weigh a range of factors, including:

• Cost of living pressures

• Inflation forecasts (April 2026 – April 2027)

• Labour market impact

• Business competitiveness

• Broader economic conditions

The confirmed rates are usually announced in November, ahead of implementation the following April.

Age bands under review

Currently, 18–20 year olds receive £10.00 per hour. The Government has asked the LPC to consult on how to remove age bands for adults, with a view to aligning 18–20 year olds with the adult NLW from April 2026.

In doing so, the LPC will need to consider:

• The impact on employment prospects for younger workers

• Incentives to remain in training or education

• Wider effects on the economy

Apprenticeship rate in focus

The apprenticeship rate will also be reviewed. The Government has asked the LPC to recommend rates set “as high as possible” without harming apprentices’ economic prospects or access to training opportunities.

What this means for employers

With pay set to rise significantly once again, employers should begin reviewing their:

• Budgeting and payroll planning

• Pay structures across different roles and age groups

• Recruitment and retention strategies, especially where younger workers and apprentices are concerned

At Cubed Talent, we’ll continue to monitor developments and share updates as the LPC moves closer to its final recommendations. In the meantime, we’re here to help businesses plan ahead, review workfore planning strategies, attract talent, and retain great people in a competitive labour market