As we approach April 2026, significant changes to the UK National Minimum Wage (NMW) and National Living Wage (NLW) are set to take effect, impacting pay structures across businesses of all sizes. For many employers and payroll professionals, these adjustments will have direct implications on wage compliance, budgeting, and workforce planning.
Understanding these changes early ensures your business stays compliant and prepared as we move into the 2026/27 financial year.
What’s Changing from 1 April 2026?
The UK Government has formally announced updated minimum wage rates that will apply from 1 April 2026. These have been set following recommendations by the Low Pay Commission and accepted by the Government.
Here’s a summary of the key rate changes:
| Rate Category | Current Rate (2025) | New Rate (from 1 April 2026) |
|---|---|---|
| National Living Wage (aged 21+) | £12.21/hour | £12.71/hour |
| 18–20 Year Old Rate | £10.00/hour | £10.85/hour |
| 16–17 Year Old Rate | £7.55/hour | £8.00/hour |
| Apprentice Rate | £7.55/hour | £8.00/hour |
| Accommodation Offset | £10.66/day | £11.10/day |
Why These Changes Matter
1. Increased Take-Home Pay for Millions
The rise in wage rates means that for low-paid workers, annual earnings on a full-time equivalent basis will increase noticeably. For example, a full-time employee aged 21+ on the NLW could see an annual income rise of over £900.
2. Compliance is Essential for Employers
Changes to minimum wage rates are statutory obligations. Failing to pay at or above the legal minimum can result in penalties, enforcement action, and reputational risk.
3. Payroll Planning
Accountancy and payroll teams must ensure systems are updated ahead of April, including adjustments to:
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Payroll software
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Payslips
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Employment contracts (if necessary)
What Employers Should Do Next
To stay compliant and mitigate any disruptions, businesses should:
✅ Review Current Payroll Structures
Analyse which employees will be affected by the new rates and the financial impact on your wage bill.
✅ Update Payroll Systems Before April
Ensure all staff categorised under the NMW and NLW have updated pay rates from the first pay period after 1 April 2026.
✅ Communicate Changes Internally
Keep employees informed about how wage changes affect pay and earnings projections. Clear communication can help maintain morale and reduce queries.
✅ Speak with your Accountant
Make sure to contact your accountant of any changes or questions you may have. If yourequire an accountant, please contact Beck Hill Ltd.
Beyond the Minimum Wage — Real Living Wage
It’s also worth noting the distinction between statutory rates and the Real Living Wage — a voluntary pay benchmark calculated based on the real cost of living. The Real Living Wage for 2026 will be higher than the Government’s statutory minimum, with:
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£13.45 across the UK
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£14.80 in London
This voluntary rate is adopted by thousands of employers committed to fair living standards.
Final Thoughts
The minimum wage increase coming into effect in April 2026 represents both an opportunity and a responsibility for businesses:
✔ It boosts earnings for many workers.
✔ It requires careful planning and payroll compliance.
✔ It highlights the importance of proactive accountancy support for clients and employers alike.
At a time when wage legislation continues to evolve, accurate guidance and early preparation can make all the difference.
If you need help reviewing payroll structures or assessing the impact of minimum wage changes on your business, our expert accountancy team is here to support you.
Need personalised advice? Contact us today to make sure your payroll is ready for April 2026.
