The Government has accepted the Low Pay Commission’s recommendations, confirming that National Minimum Wage and National Living Wage rates will increase from 1 April 2026.
These changes to rates and thresholds will affect payroll costs across most sectors, particularly those with younger workforces, apprenticeship pipelines, or large numbers of lower-paid employees.
National Minimum Wage increases from 1 April 2026
The key rates will be:
| Category | Current rate | Rate from 1 April 2026 |
| National Living Wage (21+) | £12.21 | £12.71 |
| 18 – 20 year olds | £10.00 | £10.85 |
| 16- 17 year olds | £7.55 | £8.00 |
| Apprentice rate | £7.55 | £8.00 |
| Accommodation offset (per day) | £10.66 | £11.10 |
These figures reflect the Government’s published 2026 rates.
The Low Pay Commission has highlighted the real-world impact of these uplifts. For a worker on the National Living Wage working 37.5 hours per week, the increase is expected to add approximately £977 to annual gross pay and around £81.47 per month.
The 18 – 20 rate is also rising more sharply, narrowing the gap with the NLW.
Statutory Sick Pay (SSP)
The weekly rate of SSP for the 2026/27 year is expected to rise to £123.25, up from £118.75.
In addition, the Employment Rights Bill is expected to reform aspects of statutory sick pay (SSP) eligibility and waiting rules. As this is a live legislative area, employers should monitor implementation timelines and ensure absence policies remain compliant as the final framework is confirmed.
Family-friendly statutory pay
The standard weekly rate for the following payments is expected to increase to £194.32 (from £187.18):
- Statutory maternity pay
- Maternity allowance
- Statutory adoption pay
- Statutory paternity pay
- Statutory shared parental pay
- Statutory neonatal care pay
- Statutory parental bereavement pay.
The Lower Earnings Limit, which underpins qualification for several statutory payments, is expected to rise to £129 per week (from £125).
While the increases are tied to the 2026/27 rates framework, the precise commencement dates are typically confirmed through the relevant annual Orders.
What should employers do now?
Employers should take a proactive approach ahead of April 2026:
Payroll and contract audit: Identify anyone currently close to the thresholds across all age bands, apprentices, and casual/seasonal cohorts.
Budget planning: Model the cost impact on base pay, overtime, night premiums, and employer on-costs.
Accommodation offset checks: If accommodation is provided, confirm deductions and charging structures align with the new daily limit.
Policy refresh: Review sickness absence processes in light of the expected SSP uplift and upcoming legislative reforms.
Clear internal communications: Equip managers with simple briefing notes to reduce employee relations risk and ensure consistent messaging.
How Tees can help employers
With statutory rates increasing from April 2026 and further legislative reform on the horizon, employers face a period of significant operational and financial adjustment. Tees’ Employment Law team can support you in navigating these changes smoothly and compliantly. We provide clear, commercially focused advice tailored to your workforce, industry, and organisational goals.
Further information
The Government has published the minimum wage rates for 2026, alongside supporting commentary on the Low Pay Commission’s recommendations. (GOV.UK)
The 2026/27 statutory payment rates and earnings thresholds are also set out in the relevant Government rates papers. (GOV.UK)
Disclaimer
The contents of this article are a general guide only at the date of publication. It is not comprehensive, and it does not constitute legal advice. Specific legal advice should be sought in relation to the particular facts of a given situation.
