The Government announced on 26 November 2025 that it has accepted the Low Pay Commission's recommendations for the NLW and NMW.
| Rate Category | 2025–26 | 2026–27 | Change |
|---|---|---|---|
| National Living Wage (Age 21+) | £12.21 | £12.71 | 4.1% increase (£0.50) |
| NMW Age 18–20 | £10.00 | £10.85 | 8.5% increase (£0.85) |
| NMW Age 16–17 | £7.55 | £8.00 | 6.0% increase (£0.45) |
| NMW for Apprentices | £7.55 | £8.00 | 6.0% increase (£0.45) |
| Accommodation Offset | £10.66 | £11.10 | 4.1% increase |
The Government has indicated that “for an NLW worker working 37.5 hours per week, the increases announced today will increase their annual gross pay by £977 and their monthly gross pay by £81.47.”
With many businesses facing uncertainties due to the current economic situation, the uplift will pose further challenges. It would therefore be prudent for businesses to review recruitment strategies, working patterns, efficiency measures and pricing strategies to ensure that income streams and profit margins can absorb these changes from April 2026.
Businesses are reminded that if they fail to pay the appropriate minimum wage, they may face penalties and could be named and shamed by HMRC.
