UK Government Plans Minimum Wage Increases But with Smaller Rises for Younger Workers

Young workers will receive a smaller cash increase in the minimum wage than older staff from next spring, after the UK government accepted a 3.9% rise for all age bands that pauses progress towards a single adult pay rate.

The government confirmed the increases on 28 October 2026, accepting the independent Low Pay Commission's (LPC) recommendations in full. The new National Minimum Wage (NMW) and National Living Wage (NLW) rates will apply from 1 April 2027.

Equal Percentage Rises Leave the Age Gap Intact

Workers aged 18 to 20 will receive at least £11.27 an hour, up £0.42 from £10.85. Those aged 21 and over will receive £13.21, an increase of £0.50.

Both increases are 3.9%. The smaller cash increase for younger workers therefore reflects the lower starting rate, rather than a lower percentage rise than older colleagues will receive.

The BBC reported that the change slows Labour's effort to fulfil its manifesto promise to remove 'discriminatory age bands'. It cited The Times' reporting on the expected 3.9% increase before the government confirmed the rates.

The younger adult rate rose from £8.60 in April 2024 to £10 in April 2025 and £10.85 in April 2026, a cumulative increase of approximately 26%.

Under the new rates, the hourly gap between the two adult bands will widen from £1.86 to £1.94. The government's ambition to extend the NLW to everyone aged 18 and over remains, but the commission recommended 'pausing on alignment'.

What Workers Will Earn From April 2027

All four statutory hourly rates will increase by 3.9%, including those for 16- and 17-year-olds and eligible apprentices.

The apprentice rate applies to those under 19 and to older apprentices in their first year. Apprentices aged 19 or over who have completed that year qualify for their age-related minimum.

The accommodation offset, a daily allowance used in minimum wage calculations when employers provide accommodation, will rise by £0.43 to £11.53.

Commission Prioritises Jobs as Hiring Weakens

In advice dated 23 October 2026, the LPC said weaker recruitment increased the risks associated with substantial youth pay rises.

The Low Pay Commission said youth unemployment remained elevated and vacancies were particularly weak in retail and hospitality, sectors that employ many young people. Stronger-than-expected economic growth had not produced equivalent gains in hiring.

The commission said there was little evidence that recent youth minimum wage increases had caused employment declines. However, it cautioned that this did not establish that further substantial rises would carry no risk.

It reached similar conclusions for younger teenagers and apprentices, noting that apprenticeship vacancies had declined faster than vacancies across the wider economy.

The LPC's remit gave it flexibility over when to align adult rates and instructed it to prioritise youth employment.

Adult Rate Falls Short of Earnings Benchmark

The commission also recommended restraint for older workers, balancing household pressures against weak labour demand and rising business costs.

Worker representatives described households cutting back on food and heating or borrowing to cover essentials. Employers highlighted the combined pressure of energy bills, supply-chain disruption and higher employment costs, with some business groups calling for minimum wage increases below inflation.

The £13.21 NLW falls below the £13.44 the commission estimated would be necessary to reach two-thirds of median hourly earnings by October 2027.

The Low Pay Commission expects the increase to outpace inflation between April 2027 and March 2028, potentially protecting workers' purchasing power if its forecasts prove accurate.