What are the new UK rates for minimum wage 2026?

From 1 April 2026, the National Living Wage is £12.71. The 18–20 rate is £10.85, and the 16–17 and apprentice rate is £8.00. This equals a 4.1% uplift. Employers should check anniversary dates, contracts, and payroll systems to ensure the new statutory rates apply from the first full pay period in April.

How will minimum wage 2026 affect inflation and interest rates?

Research indicates modest macro effects. NIESR suggests gains concentrate among lower‑income households, lifting targeted consumption, but aggregate inflation impact should be limited. We expect the Bank of England to focus more on core services inflation and wage growth across the wider economy, not just statutory floors, when setting rates.

Which sectors face the most risk from minimum wage 2026?

Labour‑intensive sectors with high hourly staffing face the most strain. Retail, hospitality, and social care often rely on large frontline teams. Margin pressure may rise through compression and overtime. Resilience is better where firms can lift productivity, optimise scheduling, and take small, evidence‑based price increases without losing footfall.

What should employers do before April 2026?

Run a payroll audit against new rates, check for uniform or training deductions, and fix rounding or travel time issues. Update pay bands to address compression, align rosters to demand, and brief managers. Build cash buffers for the April step‑up and document decisions for investors and lenders to support guidance.

Law and Government

UK Minimum Wage 2026: February 19 – NLW £12.71; Margins vs Spending

ByDanny Kontos February 19, 2026February 19, 2026

From 1 April 2026, the UK minimum wage 2026 change lifts the National Living Wage to £12.71. Rates for 18–20 rise to £10.85, and 16–17 plus apprentices to £8.00. This 4.1% uplift supports lower‑income households and, according to NIESR, boosts consumption while macro effects stay modest. For investors, we see payroll pressure in labour‑intensive sectors, partly offset by steadier demand at value price points. We also flag higher compliance and reputational risk as HMRC continues to name employers that underpay.