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.
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.
The popular shopping centre in Oxford’s Queen Street already has an exciting mix of shops on offer, from first-class dining options to familiar high street favourites and world-renowned brands.
Now, the Westgate has welcomed the latest addition to its retail offering, as David Clulow opticians opened on Friday, June 26.
READ MORE: All train lines closed out of Oxford for works from tonight
The eye health specialist store showcases the brand’s modernised retail format, with state-of-the-art testing rooms and improved accessibility.
It’s broad product range also includes designer frames from the likes of Chanel, Prada and Ray-Ban.
The store is the latest edition to David Clulow’s store collection which is hosted in nearly 30 cities and shopping centres across the UK.
The introduction of the new shop is the latest in a long line of recent Westgate comings and goings in recent months.
Shoe chain Russell & Bromley has departed its ground-floor store, leaving the unit empty, after the brand fell into administration.
READ MORE: Abingdon police seek to identify man who ‘frequents’ park
Similarly, Claire’s has also closed at the Westgate after the beauty and accessory brand also collapsed into administration.
Last month, the new Lego store opened on the ground floor of the centre, welcoming queues of shoppers at its grand opening event.
Oliver Bonas also recently moved from its home on the ground floor to a much larger unit on the middle floor, near the Queen Street and Bonn Square entrance.
The scheme, designed to support attendance at Armed Forces Day events, will be in effect across the UK on June 27 and June 28.
It applies to all Stagecoach services except those operated by Megabus, Transport for London and the Bee Network.
To access free travel, serving military should wear uniform or present a valid military ID card, and veterans should present a veteran’s badge or military medal.
Martin Gibbon, managing director of Stagecoach West, said: “Our Armed Forces have given so much to protect our country, and offering free travel over this weekend is just a small gesture of our immense gratitude.
“We want to make it as easy as possible for our service people, past and present, to attend local events and celebrate with their communities.”
Stagecoach’s ongoing support for the military community includes similar free travel schemes on Remembrance Day and Remembrance Sunday.
The company’s Veterans Network also offers a platform for veterans and service families within the business to connect and shape a more supportive workplace.
Stagecoach was awarded the Armed Forces Covenant Gold Award in 2024 in recognition of its commitment to supporting the military community.
Mr Gibbon said: “Through our Veterans Network, we are dedicated to ensuring Stagecoach remains a deeply supportive environment for the military community, both as passengers and as valued colleagues.”
Stagecoach has backed the Armed Forces Covenant since 2015.
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