Big Changes Ahead for Minimum Wage

Millions of workers across the UK could see a pay rise next year as the Government moves closer to delivering a single adult minimum wage. Under proposals outlined by the Low Pay Commission (LPC), the National Living Wage, currently £12.21 for those aged 21 and over, could increase to between £12.55 and £12.86 in 2026.

Building on the 6.7% Increase in April 2025

This proposal builds on the 6.7% increase seen in April 2025, which gave over three million workers a pay rise worth up to £1,400 a year. The aim is to ensure wages keep pace with inflation and the ongoing cost of living crisis, helping working people afford everyday essentials.

Phasing Out Age-Based Wage Bands

One of the biggest changes being considered is the phasing out of age-based wage bands. At present, workers aged 18–20 are entitled to a lower minimum wage of £10.00, while 16–17-year-olds can be paid as little as £7.55 an hour. The Government has called these age bands “discriminatory” and says it wants to create a fairer system by setting one minimum wage for all adults.

This move could have a major impact on younger workers, especially those aged 18–20, who saw a record 16.3% rise earlier this year. However, employers—particularly in sectors like hospitality and retail—have raised concerns about rising staff costs and potential cuts to hiring.

Current Minimum Wage Rates (per hour)

• 21 and over (National Living Wage): £12.21
• 18–20: £10.00
• 16–17: £7.55

Towards a Single Adult Rate

With the Government’s direction now clear, a single adult rate could soon replace the current structure, offering a significant boost to lower-paid and younger workers alike. For more details on these developments, see our in-depth analysis of the minimum wage changes.

Addressing the Real Cost of Living

While these proposed changes represent meaningful progress, many argue they still fall short of what’s truly needed. Even with a potential rise to £12.71, the National Living Wage may still not reflect the actual cost of living in many parts of the UK, especially as housing, food, transport, and energy bills continue to rise faster than wages.

Statement from Workers of England

“A so-called genuine living wage should allow workers not just to survive, but to live with security and dignity. For too many, even full-time work does not cover basic needs, forcing reliance on credit, second jobs, or food banks. Until minimum pay genuinely reflects the real cost of living, county by county, the promise to ‘make work pay’ will remain out of reach for millions. The WEU continues to campaign for a living wage for all.”