Britain will increase its main minimum wage rate by 4.1% to £12.71 an hour from April 2026, the government announced Tuesday, aiming to keep low-income workers’ pay in line with average earnings.
The rise follows a 6.7% increase earlier this year and will benefit 2.4 million workers aged 21 and over, while another 300,000 younger workers and apprentices will receive wage boosts of 6% to 8.5% as part of the government’s plan to phase out lower youth rates.
Finance Minister Rachel Reeves said the hike ensures workers are “properly rewarded for their hard work”, as the government prepares to unveil a budget expected to include major tax increases.
Also read: Sindh sets minimum monthly wage at Rs40,000
However, the move has drawn criticism from the hospitality sector, which warns that the higher wage bill will force businesses to raise prices and could fuel inflation.
Kate Nicholls, chair of UKHospitality, said many firms “have reached their limit” on absorbing rising costs.
Britain continues to battle the highest inflation among major advanced economies, recorded at 3.6% in October.
The Bank of England warns that wage growth above 3% could slow progress toward its 2% inflation target amid weak productivity.
Despite employer concerns, the Low Pay Commission, which recommended the increase, said there is no significant evidence that past wage hikes for over-21s have hurt job growth.
The UK’s unemployment rate currently stands at 5%, the highest since 2021.
The commission said it balanced the pressures of rising living costs for workers with the financial strain facing employers due to upcoming tax rises.
