UK National Living Wage increase 2026: Advisory body estimates wage to rise by 4.1% to £12.71 an hour
UK pay body expects the national living to rise by 4.1% next year.
The UK Government has asked the Low Pay Commission (LPC) to ensure the national living wage doesn’t drop below two-thirds of UK median earnings. The advisory body predicts a potential increase of up to 65p an hour for UK workers.
Currently, the rate stands at £12.21 per hour. To avoid dipping below two-thirds of median earnings - a benchmark the Government insists on - the LPC suggests it should reach £12.71 by 2026.
However, the LPC also recognises that economic fluctuations could see the national living wage climb to anywhere between £12.55 and £12.86 an hour. It said: “Our central estimate is that an NLW increase to £12.71 (4.1%) would ensure the NLW does not fall below two-thirds of median earnings. However, predicting this figure is challenging, so we project a range around our central estimate which runs from £12.55 to £12.86.”
The minimum wage you earn per hour is determined by your age and if you're an apprentice. To be eligible for the National Minimum Wage, you must have reached school leaving age, and to receive the National Living Wage, you need to be aged 21 or above, with workers aged 20 and under still falling under the minimum wage bracket.
As of April 1, 2025, a wage boost was felt by around three and a half million workers, though the actual increase on payslips will differ from person to person. The National Living Wage saw a rise from £11.44 to £12.21 per hour. Since 2024, people aged 21 and up have been entitled to this rate, a change from the previous threshold of 23 years old.
The government claims that this hike means a full-time worker could see an additional £1,400 annually. For younger workers, those between 16 and 20 years old, the National Minimum Wage applies, with varying rates based on their age.