Business & Technology
Minimum Wage to rise on April 1 2026 – what it means for you
The National Living Wage will rise by 4.1% to £12.71 an hour for eligible workers aged 21 and over, which the Government said will increase gross annual earnings of a full-time worker on the rate by £900, benefiting around 2.4 million low-paid workers.
That will mean for the lowest paid workers on a 40-hour-week contract their pre-tax pay will hit £26,436.80 for the first time. A 37.5 hour week will see a salary of £24,784.50, while 35 hours will pay £23,132.20 a year.
The National Minimum Wage rate for 18 to 20-year-olds will increase by 8.5% to £10.85 an hour, narrowing the gap with the National Living Wage.
This will mean an annual earnings increase of £1,500 for a full-time worker, which the Government said marks further progress towards its goal of phasing out 18 to 20 wage bands and establishing a single adult rate.
The National Minimum Wage for 16 to 17-year-olds and those on apprenticeships will increase by 6% to £8 an hour.
Chancellor Rachel Reeves said she had accepted recommendations from the Low Pay Commission so that those on low incomes are “properly rewarded” for their work.
The Chancellor said: “I know that the cost of living is still the number one issue for working people and that the economy isn’t working well enough for those on the lowest incomes.
“Too many people are still struggling to make ends meet, and that has to change.
“That’s why today I’m announcing that we will raise the National Living Wage and also the National Minimum Wage, so that those on low incomes are properly rewarded for their hard work.
“These changes are going to benefit many young people across our country, getting their first job.”
What does the minimum wage increase mean for small businesses?
Kate Underwood, Managing Director and HR Director at Southampton-based Kate Underwood HR and Training says: “It’s good news for workers who’ve been stuck on the lowest rung for too long. £12.71 an hour still won’t stretch far in today’s world, but it’s a start. And closing the gap for younger workers? About time.
“Will it be tough for small businesses? Yep. But so is constant staff turnover, sick days from burnout, and people juggling three jobs just to pay the bills.
“Can the UK afford it? Wrong question. Can we afford not to pay people properly? That’s the real one.”
Prem Raja, head of Trading Floor at Currencies 4 You agrees that it’s good news for workers.
“They need the extra cash and hopefully they spend it locally,” he says. “But we have to be real about the pressure this puts on business owners. It is getting incredibly hard to run a company right now. We’re already dealing with rising National Insurance and a weak Pound. Adding a big wage hike on top, especially that huge jump for younger staff, is squeezing us from every side.
“The brutal truth is that if employing people becomes too expensive, businesses just won’t hire. We’ll see jobs disappear because owners simply can’t afford the payroll, or prices will have to go up, which just fuels inflation further.
“It looks like they want to land some ‘good news’ before the Chancellor likely announces heavy tax burdens tomorrow. Without real help for small businesses, this could be the tipping point that forces many entrepreneurs to shut down.”
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But Riz Malik, director at Southend-on-Sea-based R3 Wealth also has concerns: “The last budget impacted employers view on employment by adding further costs.
“Raising the national living wage will only add to it if you factor in this and the associated employment costs. This is on the eve of the budget, which is likely to make it even more costly to do business in the UK.”
The increases will benefit a total of 2.7 million young and older workers, said the Government, adding that by seeking expert and independent advice, it was able to ensure that the right balance is struck between the needs of workers, the affordability for businesses and the opportunities for employment.
Lidl has been given planning permission to build its ninth supermarket in Oxfordshire, despite concerns over flooding.
Aldi opened in Didcot in 2015 and has a supermarket at the Jubilee Way roundabout but shoppers in the town have had to wait over a decade for Lidl to follow.
READ MORE: Popular hi-fi shop has closed down
South Oxfordshire District Council has now backed plans by the German retailer for a new supermarket in Abingdon Road.
Former Didcot mayor Mocky Khan said: “This give the residents of Didcot more choice, especially when you consider the cost of living environment we have at the moment.
“The town is growing with more new homes being built, and with more growth it’s good to have a wide variety of supermarkets to fit all budgets,”
The plans for the new supermarket were first submitted in 2024.
Didcot Town Council previously objected to the scheme, on the grounds of a lack of flood risk mitigation measures, along with the county council who said there was “insufficient information”.
The town council noted there are “several flooding incidents in the area, especially when the Marsh Bridge water pumps fail”.
But in a report by planning officers granting permission to the supermarket, those issues have now been addressed by Lidl.
The officers said the proposals “largely accord” with the policies around planning, and more can be done to “break up” the car park with greenery.
Planning officers chose to let Lidl build the new supermarket subject to conditions.
They said in a report: “Balanced against this policy conflict is the fact that this is a previously developed site, which is currently in a dilapidated state.
“The proposals represent a significant improvement on the current underutilisation of the site and on its appearance.
“The National Planning Policy Framework and Local Plan set out significant support for the reuse of previously developed land.
“As stated in the applicant’s planning statement, there have been previous enquiries as to the redevelopment of the site that have not come to fruition.
“Given this, finding a viable use for the site is a clear benefit which I consider to be of substantial benefit.”
Thirty-four residents had objected to Lidl’s plans, highlighting concerns over extra traffic, there being no need for another supermarket in the town and there being more appropriate locations to build in their view.
Didcot already has an Aldi store just off Broadway and a Sainsbury’s, M&S Foodhall and Asda.
The nearest Lidl to the proposed site are in Lupton Road, Wallingford, and Marcham Road in Abingdon.
Three people wrote in to support the new Lidl, recognising the benefits of a discount food store and the further jobs it will create.
Lidl has said its proposals for a Didcot supermarket would deliver 40 full-time equivalent jobs as well as further employment during the construction phase.
No opening date was given by the retailer, while the developer is currently on site progressing with the enabling works.
A spokesman said: “We’ve seen demand for our affordable, high-quality products continue to rise in Oxfordshire, and we are committed to serving more communities in the area.
“Our new store will create around 40 new jobs and build on our continued growth.
“We’re excited to be a step closer to opening this store and thank everyone who has supported us on our journey so far.”
It also said the £12m investment would work with the 6,300 new homes allocated to be built, as per the local plan.
Dalcour Maclaren, a specialist in utilities and infrastructure, announced the news on June 22, following a detailed assessment of its operations, including governance, employee wellbeing, environmental impact, and social responsibility.
James Neil, CEO of Dalcour Maclaren, said: “This is a fantastic achievement for Dalcour Maclaren.
“B Corp status gives us the official badge that recognises everything that matters most to us in our culture, our values, and how we make decisions for our people and our clients. We thrive on doing things differently at DM and B Corp absolutely endorses this.”
The certification means the company meets rigorous standards of social and environmental performance, transparency, and accountability.
Dalcour Maclaren now joins more than 10,000 B Corps worldwide and over 2,600 in the UK, including well-known names such as The Guardian, Innocent Drinks, Patagonia, and The Big Issue.
Chris Turner, CEO of B Lab UK, said: “Welcoming Dalcour Maclaren to the B Corp community is hugely exciting. Its commitment to doing business differently will be an inspiration to others and will help spread the notion that success in business is as much about people and planet as it is profit.”
Dalcour Maclaren operates across the UK and Ireland, supporting major projects in energy, water, transport, and digital infrastructure. The company’s services include land, planning, environment, stakeholder engagement, and geospatial services.
South Oxfordshire District Council’s Cabinet will consider a targeted, one-off reduction in business rates in July, aimed at easing pressure on pubs across the district.
The move follows growing concern that many venues are struggling with rising costs despite their importance as community hubs, rural assets and employers.
Cllr Pieter-Paul Barker, Cabinet Member for Finance and Property Assets, said: “Everyone knows that pubs are experiencing significant financial pressures.
“These venues play an important role in the economy and are vital for ensuring a thriving local community.
“We’re carefully considering how best to provide targeted support for pubs in South Oxfordshire which will both help to strengthen our local and rural economy and safeguard employment in our hospitality sector.”
Council leader Cllr Maggie Filipova-Rivers said: “While this support can’t fix everything, it’s a step in the right direction.
“We’re staying focused on collaborating with our local pubs and partners to provide the practical support and guidance they need right now.”
Details of the proposed business rates support are set out in a report to cabinet on July 2, when a decision is due to be made.
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