NMW rates likely to be between £12.55 to £12.86 from April 2026
Employers face another significant rise in the rates of the National Living Wage (NLW) and National Minimum Wage (NMW) next year.
07.08.2025
The Low Pay Commission (LPC) has updated its projections for the rates that may apply from April 2026. These are indicative figures, not final recommendations, and are based on the government’s remit that the NLW should not fall below two-thirds of UK median earnings.
The LPC admits that it is difficult to predict the actual rate increases it will recommend given that wage growth has already exceeded expectations and may continue to do so.
With that proviso in mind, it is working on a projected range of £12.55 to £12.86 per hour for the NLW rate, payable to those aged 21 and over. It estimates that this rate will increase by 4.1% to £12.71 amounting to an extra 50 pence per hour.
These figures are higher than previous estimates due to stronger than expected wage growth in 2025.
The LPC will submit its final recommendations to the government by the end of October 2025, taking into account:
- Cost of living
- Inflation forecasts between April 2026 and April 2027
- Labour market impact
- Business competitiveness' and
- Broader macroeconomic conditions
Are the age bands likely to change?
The government says it is ‘committed to removing the discriminatory age bands for adults’ and has asked the LPC to consider how to achieve this (via consultation) with a view to making recommendations for the 18 to 20-year-old rate from April 2026. Currently, this group receive £10.00 an hour.
It also says that ‘in seeking to narrow the gap between the National Minimum Wage and the National Living Wage, the LPC should also take into account the effects on employment of younger workers, incentives for them to remain in training or education and the wider economy.’
What about the apprenticeship rate?
The government has asked the LPC to set rates ‘as high as possible’ without damaging the economic prospects of apprentices.
When will the government announce the rates for 2026?
The government normally announces the new rates in November and changes will come into force in April 2026.
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