Britain’s main minimum wage will rise by 4.1% to £12.71 ($16.67) an hour from April 2026, the government announced on Tuesday, aiming to keep pay in line with average earnings.
Finance Minister Rachel Reeves said the increase, following a 6.7% rise earlier this year, is designed “so that those on low incomes are properly rewarded for their hard work.” The rise will benefit 2.4 million workers aged 21 and over, while around 300,000 younger workers and apprentices will see increases of 6%–8.5% as the government phases out lower minimum rates.
The announcement comes a day ahead of Reeves’ annual budget, which is expected to include significant tax rises. “The cost of living is still the number one issue for working people and that the economy isn’t working well enough for those on the lowest incomes,” Reeves said in a video message.
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The move faced pushback from the hospitality sector. Kate Nicholls, chair of UKHospitality, warned: “Hospitality businesses have reached their limit of absorbing seemingly endless additional costs. They will simply all be passed through to the consumer, ultimately fuelling inflation.”
The increase was recommended by the Low Pay Commission, whose chair, Conservative lawmaker Philippa Stroud, said it carefully balanced the pressures on workers and employers. “In our discussions this year with workers and employers alike, it has been clear that no one is having an easy time,” she said.