Minimum wage to rise in the UK from April

London - Millions of people are set to get a pay rise from April 2026 due to an increase in the minimum wage, the British government said.

The hourly rate for over-21s will rise by 50p to £12.71, with workers aged 18-20 seeing an 85p rise to £10.85, and under-18s and apprentices getting 45p more to £8 an hour.

Finance Minister, Rachel Reeves, also known as Chancellor,  said 2.7 million people will benefit from the increases.

The minimum wage increases are on top of a 6.7% rise for over-21s and a 16.3% rise for 18 to 20 year olds respectively last year, when there was also a rise in employers' National Insurance contributions.

Minister Reeves said the cost of living was still the biggest issue for working people.

"The economy isn't working well enough for those on the lowest incomes," she added.

 The Low Pay Commission, the government agency which recommended the increases, said it was of the view that previous minimum wage rises for over-21s had "not had a significant negative impact on jobs".

The Resolution Foundation think tank, which focuses on low to middle-income households, said the increase for 18 to 20 year olds was "unnecessarily big" and could make it harder for people in that age group to find a job.

"These steep increases risk causing more harm than good if they put firms off hiring and push up NEET [not in education, employment or training] rates,” the BBC reported.

Katherine Chapman, director of the Living Wage Foundation which recommends a higher voluntary hourly rate of pay, said the rise still fell short of covering the cost of living.

"The real living wage is currently £13.45 in the UK with a higher rate of £14.80 in London,” she said.

The Trades Union Congress (TUC) said phasing out the separate rate for 18 to 20 year olds was "absolutely the right call".

"With living costs stubbornly high, an above-inflation pay rise will make a real difference to the lowest-paid," said TUC General Secretary Paul Nowak.

"Young workers have bills like everyone else and deserve a fair day's pay for a fair day's work. It's right they see a larger rise as youth rates are phased out,” he told the BBC.

Chancellor Reeves is to present budget proposals in the parliament this afternoon (26^th November).