Stories

Tue, 31 Mar 2026

Tue, 31 Mar 2026 Pay rise for 2.7 million people as minimum wage increase comes into force

Many businesses have said they will have to pass higher wage costs onto customers.
- Workers aged 18-20 will now earn £10.85 per hour (an increase of £0.85) - Under-18s and apprentices will now earn £8 per hour (an increase of £0.45) Campaigners have welcomed the increases, but businesses say they will struggle to absorb the higher costs, potentially leading to price rises or staff cuts. The Low Pay Commission has stated that previous minimum wage rises for over-21s had a "not significant negative impact on jobs". Prime Minister Sir Keir Starmer said wages are increasing for "the lowest paid" but that the government must do more to address rising costs. Some business owners, such as Mettricks' managing director Spencer Bowman, have expressed concerns about the sustainability of the increased wage costs, which will be compounded by other rising expenses. The minimum wage increases come on top of previous rises in 2025 and are part of a package of measures aimed at supporting low-income households amidst high inflation.