NMW rates likely to be between £12.55 to £12.86 from April 2026
Employers face another potentially significant rise in the rate of the National Living Wage (NLW) and National Minimum Wage (NMW) in 2026.
The Low Pay Commission (LPC) has updated its projections for the rates that could apply from April 2026.
These are merely indicative figures and not final recommendations based on the government’s position that the NLW should not fall below two-thirds of UK median earnings.
With this proviso in mind it is working on a projected range of £12.55 to £12.86 per hour for the NLW rate, payable to those aged 21 and over.
It estimates that this rate will increase by 4.1% to £12.71 amounting to an extra 50 pence per hour.
These figures are higher than previous estimates due to stronger than expected wage growth this year.
The LPC will submit its final recommendations to the government by the end of October 2025, taking the following into account:
- The cost of living
- Inflation forecasts between April 2026 and April 2027
- Labour market impact
- Business competitiveness; and
- Broader macroeconomic conditions.
What about the age bands – are these also likely to change?
The government says it is ‘committed to removing the discriminatory age bands for adults’ and has asked the LPC to consider how to achieve this with a view to making recommendations for the 18 to 20-year-old age group from April 2026. Currently, this age group receive £10.00 an hour.
What about apprentices?
The government has asked the LPC to set rates ‘as high as possible’ without damaging the economic prospects of apprentices.
When will the final NLW and NMW rates for 2026 be announced?
The government normally announces the new rates in November with the changes will come into force in April 2026.
Watch this space and take early advice on how manageable these will be for your business and whether you may need to pivot now to ensure your business remains viable.
Strong head winds ahead.
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