UK to Lift Minimum Wage by 4.1% to 12.71 from April 2026

The UK government has approved a 4.1% rise in the national minimum wage for workers aged 21 and over, increasing the rate to £12.71 per hour starting April 2026. The decision follows recommendations from the Low Pay Commission, which found recent wage increases had not significantly affected employment levels.

The government said the move aims to support low-income workers facing persistent cost-of-living pressures. The uplift is part of an ongoing effort to narrow pay gaps for younger workers as well. Minimum wage rates for those under 21 and for apprentices will see larger percentage increases, ranging from 6% to 8.5%, extending the policy of gradually reducing age-related pay differences.

Finance Minister Rachel Reeves said the increase ensures workers “are properly rewarded for their hard work.” The rise will cover an estimated 2.4 million workers aged 21 and above, with another 300,000 younger employees and apprentices also set to benefit.UK raises minimum wage to £12.71 from April 2026

• New UK wage hike to benefit 2.7 million workers
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• Business groups offered a more cautious response.

UK Hospitality said the sector has already absorbed significant cost increases and warned the new wage levels may push businesses to raise prices or limit hiring. The group expressed concern that employment opportunities for young workers could shrink as labour expenses rise.

The wage announcement arrives a day before the government’s annual budget, which is expected to feature substantial tax increases. The timing underscores the balancing act between raising living standards and managing broader economic pressures.

Inflation in the UK remains among the highest in advanced economies, though it is forecast to fall toward the Bank of England’s 2% target by mid-2027. Some policymakers warn that wage growth above 3% could complicate that progress due to weak productivity trends.

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The rise marks another step in the UK’s multi-year effort to lift pay for lower-income households while navigating ongoing economic headwinds.