Extra £900 hitting UK bank accounts from April in major boost | Personal Finance | Finance
An extra £900 per year will be hitting the bank accounts of millions of workers across the UK from April in a major pay boost.
From April 1, the UK National Living Wage for workers aged 21 and over will rise by 4.1%, taking hourly rates from £12.21 to £12.71 per hour. The pay increase means full-time workers will see their gross annual earnings increase by £900, benefiting around 2.4 million people on low pay.
The National Minimum Wage rate for 18 to 20 year-olds is also rising from April by 8.5%, taking hourly rates from £10 to £10.85 per hour, narrowing the gap with the National Living Wage. It means that a full-time worker in this age group will see an annual earnings increase of £1,500, 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 is also rising from next month by 6%, with hourly rates increasing from £7.55 to £8 per hour.
The National Living Wage applies to most workers whereas the National Minimum Wage is the minimum amount an employer must pay per hour for all workers aged below 21.
According to the government, the April 2026 increases will benefit 2.7 million young and older workers. The boost to pay rates, which were announced in November 2025, come after the government accepted in full the recommendations made by the Low Pay Commission.
The increase in the National Living Wage will ensure a real-terms pay rise for low-paid workers and will meet the government’s aim to ensure the rate doesn’t drop below two-thirds of median earnings.
Meanwhile, the increase to the 18 to 20 year old rate makes progress towards alignment with the National Living Wage.
Announcing the pay rates increases in November last year, HM Treasury said: “We are raising the National Living Wage and National Minimum Wage meaning full-time workers on the National Living Wage see a rise of £900 a year, while full-time workers on the 18-20 National Minimum Wage rate will see a £1,500 rise.”
