Nearly two million Brits ‘guarenteed’ to get an additional £975 a yr from April – here is how
For an employee working these hours, the 50p hourly hike translates to an extra £18.75 per week, while ver the course of a 52-week year, this totals exactly £975 in additional gross income
It’s a lovely bonus(Image: Getty Images)
Millions of Brits will be better off in April thanks to some rare good news from the UK Government. Following a difficult period of stagnant growth and rising costs, the Treasury has confirmed a significant uplift in the National Living Wage that will see the lowest-paid full-time workers receive a pay boost worth nearly £1,000 annually.
Starting April 1, 2026, the National Living Wage—the statutory minimum for workers aged 21 and over—will rise from £12.21 to £12.71 per hour. While a 50p hourly increase might appear modest at a glance, the cumulative effect is substantial for those clocking in full-time hours.
The “guaranteed” £975 figure is based on a standard 37.5-hour working week. For an employee working these hours, the 50p hourly hike translates to an extra £18.75 per week. Over the course of a 52-week year, this totals exactly £975 in additional gross income.
This 4.1% increase is the result of the Government accepting the full recommendations of the Low Pay Commission, an independent body that advises on wage rates. The move is designed to ensure the minimum wage keeps pace with inflation and does not fall below two-thirds of median earnings, a key target for maintaining living standards among the UK’s lowest earners.
The good news extends beyond those over 21. In a bid to narrow the gap between younger and older workers, the Government has announced even steeper percentage rises for the 18-20 age bracket.
Workers aged 18 to 20 will see their minimum hourly rate jump from £10.00 to £10.85—an 8.5% increase. For a full-time worker in this younger demographic, this adjustment could mean an annual pay rise exceeding £1,500, significantly boosting the spending power of young adults entering the workforce. Meanwhile, 16-17 year-olds and apprentices will see their rate rise to £8.00 an hour.
Chancellor Rachel Reeves described the uplift as a “vital step” in supporting household incomes. “We know the cost of living remains the number one issue for working people,” she stated in a video message following the announcement. “That is why we are ensuring those on the lowest incomes are properly rewarded for their hard work.”
While business groups have cautioned that the rise will increase payroll costs for employers—particularly in the hospitality and retail sectors—unions have welcomed the change as a necessary buffer against high prices. For the two million workers currently on the minimum wage, the April deadline can’t come soon enough.
Workers are advised to check their payslips in April to ensure the new rate has been applied correctly. The new rates are legally binding, and any employer failing to meet the £12.71 threshold for eligible staff faces heavy fines from HMRC.
For the latest breaking news and stories from across the globe from the Daily Star, sign up for our newsletters.
