Minimum wage rises to £12.71 an hour as firms warn of impact

Many businesses have said they will have to pass higher wage costs onto customers.

The National Minimum Wage is set to increase from £12.21 to £12.71 in April 2026. This rise is leading to wage compression, where the gap between minimum wage roles and skilled roles is narrowing, affecting pay structures in the logistics sector.

The UK Budget confirmed that from 1 April 2026, the statutory National Minimum Wage (NMW) will rise. The National Living Wage for workers aged 21 and over will increase from £12.21 to £12.71 per hour.

The UK's minimum wage will rise from 1 April by 4.1%, taking the national living wage for those aged 21 and over to £12.71 an hour. Employers are considering how to absorb the costs, including raising prices or reducing headcount.

In 2026, several statutory pay rates are due to increase, including the National Minimum Wage (NMW). From 1st April 2026, the National Living Wage for workers aged 21 and over will increase to £12.71 per hour, up 50p (4.1%).

Millions of workers across the UK are set to begin receiving substantial pay rises from today, with the National Living Wage for workers aged 21 and over increasing to £12.71 an hour.