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.
Coverage by Political Leaning
See how different sides of the spectrum reported this story
Notable Quotes
"the rise was a 'step in the right direction'"
— Ifunanya Ezechukwu , Activist
"feeling 'very, very happy' about the rise"
— Alex McCarthy , Other
"the rise is necessary because 'everything is going up in price'"
— Amelia Evans , Other
"'the cost increases have got to be sustainable'"
— Spencer Bowman , Executive
"wages were going up 'for the lowest paid'"
— Sir Keir Starmer , Politician
"'I don't think any of our members want to exploit working people'"
— Lord Richard Harrington , Politician
"Too many are struggling to make ends meet and that has to change."
— Rachel Reeves , Politician
"Even where the hourly rate change looks modest on paper, the real cost impact can be wider."
— Bobby Ahmed , Executive
"The cumulative effect of wage rises alongside other extra costs will impact organisations."
— Charles Cotton , Executive
"The results paint a worrying picture for the job market."
— Chris Robson , Executive
"Paying staff correctly is fundamental to ensuring a positive company culture."
— Kate Palmer , Executive
"Businesses will be under more scrutiny than ever to get this right."
— Jo Mackie , Executive
Key People
A university student working part-time who expressed his feelings about the wage rise.
An 18-year-old who believes the wage rise is necessary but is concerned about job opportunities.
Bobby Ahmed is an employment solicitor and managing director of Neathouse Partners.
Charles Cotton is a senior reward advisor at CIPD.
Chris Robson is an employment tax partner and fair pay lead at RSM UK.
A young worker who shared her perspective on the minimum wage increase.
Jo Mackie is an employment law partner at Michelmores.
Kate Palmer is the chief operating officer at HR consultancy Peninsula.
Former Conservative MP and chairman of Make UK, addressing wage issues in the manufacturing sector.
Chancellor who announced guaranteed paid work placements for youth.
Leader of the Labour Party and Member of Parliament for Holborn and St Pancras.
The managing director of Mettricks, a chain of coffee shops, discussing the impact of wage increases.
Locations
Tags
All Coverage
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.
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.
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.
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