The Government has kicked off the process to set new minimum wage rates for April 2026, tasking the Low Pay Commission (LPC) with laying the groundwork.
Final numbers will land in October 2025, but the message is already clear: employers should be preparing now for further increases in wage costs.
What’s on the table?
The Government remains committed to keeping the National Living Wage (NLW) at no less than two-thirds of UK median earnings, a measure aimed at tackling low pay.
Based on current forecasts, we could be looking at an NLW of £12.71 by April 2026, a 4.1% rise on the current £12.21 rate for those aged 21+.
At the same time, the LPC will explore how to narrow the gap between the NLW and the rate paid to 18–20-year-olds, with a view to establishing a single adult rate in the future.
What this means for your business
While these figures aren’t final, the trajectory is set. Here are three key steps to take now:
- Build wage growth into your 2026 payroll budgets. Even a modest rise can have a meaningful impact at scale.
- Review internal pay structures. If the NLW goes up, you may need to adjust pay for other roles to maintain fairness and morale.
- Account for added costs. Higher wages also mean higher employer NICs and pension contributions
Looking ahead
This is part of the Government’s wider push to raise living standards through wage growth, and it’s not slowing down.
At Wilson Partners, we’re helping clients model the impact of future wage scenarios, understand the broader implications on team structure, and plan ahead with confidence.
Need a hand sense-checking your payroll strategy or budget assumptions? Let’s talk.
