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Almost three million workers set to benefit as Chancellor announces changes from April 2026.

The National Living Wage for workers aged 21 and over will increase from £12.21 to £12.71 per hour. For someone working a standard full-time week, this represents an annual pay rise of around £900, bringing their yearly earnings to approximately £24,785.

Young adult workers aged 18 to 20 will see their hourly pay rise from £10 to £10.85. Full-time workers in this age group can expect roughly £1,500 extra per year.

Workers aged 16 to 17 will receive £8 per hour, up from the current £7.55, representing a 6% increase. Apprentices aged 16 to 18 will receive £8 per hour.

Several groups fall outside these protections, including self-employed individuals, company directors, volunteers, armed forces members and prisoners. Some workers on government employment schemes may receive lower fixed payments.

Businesses that underpay staff can face financial consequences. In October 2025, nearly 500 employers received fines exceeding £10 million in total for minimum wage violations.

The Real Living Wage, a voluntary rate managed by the Living Wage Foundation charity, differs from the legal minimum. From October 2025, it stands at £14.80 in London and £13.45 elsewhere in the UK. Around 500,000 employees across more than 16,000 organisations receive this higher rate.