The National Living Wage is set to increase to £12.71 per hour from April 2026.
The Government has accepted the Low Pay Commission’s recommendations on the future rate of the National Living Wage, increasing the headline rate by 50p to £12.71 per hour in April 2026.
From 1 April 2026, the new National Living Wage and Minimum Wage rates will be:
- The NLW will rise by 4.1% to £12.71 per hour for eligible workers aged 21 and over (currently £12.21 per hour)
- The NMW rate for 18–20-year-olds will also increase by 8.5% to £10.85 per hour (currently £10 per hour)
- The NMW for 16–17-year-olds and those on apprenticeships will increase by 6% to £8 per hour (currently £7.55 per hour)
In its submission and oral evidence to the Low Pay Commission earlier this year, the Association of Convenience Stores (ACS) highlighted that this year’s increase has been particularly challenging for many local shops, as the National Living Wage increases were coupled with increases in Employer National Insurance Contributions (NICs) and a reduction in the threshold at which they start paying NICs. It warned that the most common consequences of increases in employment costs this year for retailers and consumers have been taking lower profits, increasing prices, and reducing the number of staff hours in the business.
The ACS welcomed clarity on the National Living Wage rate for 2026/7, and has called on the Government to support the convenience sector through the business rates system in this week’s Budget.
In its evidence to the Commission, it called for a measured approach to future headline rate recommendations that doesn’t exceed the current two-thirds of median earnings target and explicitly takes into account the impact of rising employment costs on businesses. The ACS also recommended a phased approach to NLW eligibility, so that one age group at a time is brought into being eligible for the headline NLW rate instead of a direct jump to 18 year-olds receiving the full NLW rate.
Commenting on the new rates, Association of Convenience Stores chief executive James Lowman said: “We have engaged with the Low Pay Commission throughout the year, highlighting the importance of maintaining the established two-thirds median earnings target. While this announcement represents a significant cost increase for retailers, our sector will welcome the consistency of approach and clarity that allows them to make investment and productivity decisions in 2026.”
Lowman added that this increase means there is “even more of a spotlight on decisions made in the Budget this week on areas like business rates multipliers and thresholds, which could be the difference between a store turning a profit or making a loss next year”.
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