Overview
- The new rates, which take effect April 1, lift the National Living Wage to £12.71 for workers aged 21 and over.
- Pay for 18 to 20-year-olds rises 8.5% to £10.85, while the 16 to 17 and apprentice rate increases 6% to £8.00.
- The accommodation offset, which caps what employers can charge when they provide housing, goes up 4.1% to £11.10.
- The government estimates about 2.7 million workers will benefit, including roughly £900 extra a year for full-time NLW earners and about £1,500 for full-time 18 to 20-year-olds.
- Ministers accepted Low Pay Commission advice set in the November 2025 budget, saying the bigger rise for 18 to 20-year-olds moves toward a single adult rate, as UKHospitality and small-business voices warn of hiring risks and likely pass-through to customers.