Increased the National Living Wage and National Minimum Wage hourly rates and the daily accommodation offset amount effective from 1 April 2026.
This instrument increases the statutory hourly pay rates for workers across the United Kingdom effective from 1 April 2026.
It raises the National Living Wage for those aged 21 and over, as well as the National Minimum Wage rates for workers aged 18 to 20, workers under 18, and apprentices.
The regulations also adjust the daily limit that an employer can offset against a worker's minimum wage pay when providing living accommodation.
Arguments For
The instrument updates statutory pay floors to maintain the value of earnings for low-paid workers across the United Kingdom.
The Secretary of State exercises powers under the National Minimum Wage Act 1998 to adjust specific hourly rates based on age and apprenticeship status.
The regulations adjust the accommodation offset to account for changes in the value or cost of employer-provided living quarters.
Arguments Against
Business groups may express concern regarding the increased wage costs for employers, particularly in sectors with high proportions of young or apprentice workers where percentage increases are higher.
Economic analysts might question whether the specific rate increases adequately balance worker purchasing power against potential inflationary pressures or reduced hiring incentives.
Small businesses may highlight shorter lead times for adjusting payroll budgets before the 1 April 2026 commencement date.
- —(1) These Regulations may be cited as the National Minimum Wage (Amendment) Regulations 2026.
(2) These Regulations come into force on 1st April 2026.
(3) These Regulations extend to England and Wales, Scotland and Northern Ireland.
This section establishes the official name and operational date of the regulations as 1 April 2026.
It confirms that the updated wage rates apply uniformly throughout all nations of the United Kingdom.
- —(1) The National Minimum Wage Regulations 2015 are amended as follows.
(2) In regulation 4 (the national living wage) for '£12.21' substitute '£12.71'.
(3) In regulation 4A(1) (workers who qualify for the national minimum wage at a different rate)—
(a) in sub-paragraph (b) for '£10.00' substitute '£10.85';
(b) in sub-paragraph (c) for '£7.55' substitute '£8.00';
(c) in sub-paragraph (d) for '£7.55' substitute '£8.00'.
(4) In regulation 16(1) (amount for provision of living accommodation) for '£10.66' substitute '£11.10'.
This section mandates specific increases to hourly pay rates.
It raises the National Living Wage for workers aged 21 and over to £12.71, the rate for 18–20 year olds to £10.85, and the rate for both under-18s and apprentices to £8.00.
Additionally, it increases the 'accommodation offset' to £11.10 per day.
This offset represents the maximum hourly amount an employer is permitted to count toward minimum wage obligations when they provide a worker with a place to live.
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