National Living Wage increases take effect from 1 April

From 1 April 2026, new National Living Wage (NLW) and National Minimum Wage (NMW) rates came into force across the UK, increasing the statutory minimum hourly pay for millions of workers.

For employers across health and social care, where staffing represents one of the largest operational costs, the annual increase is likely to have significant implications for workforce planning, budgets and commissioned services.

New hourly rates

The new statutory rates are:

The National Living Wage for workers aged 21 and over increased by 50p per hour (4.1%), while the rate for 18 to 20-year-olds increased by 8.5% as part of the Government’s longer-term ambition to narrow the gap between younger workers’ pay and the adult rate.

What does this mean for healthcare providers?

Care providers, GP practices, NHS contractors and other healthcare organisations should ensure that payroll systems and employment contracts reflect the new statutory rates where applicable.

Organisations may also wish to review:

• salary differentials between grades
• recruitment and retention budgets
• commissioned contract values
• overtime and enhanced pay calculations
• apprenticeship pay arrangements.

For labour-intensive sectors such as adult social care, the increase is expected to place additional pressure on operating costs, particularly where contract uplifts do not fully reflect higher employment expenses.

Employer responsibilities

Employers are legally required to pay eligible workers at least the applicable minimum wage rate. HM Revenue & Customs (HMRC) is responsible for enforcing the legislation and can investigate employers who fail to comply.

Workers who believe they have been underpaid can use the Government’s online National Minimum Wage calculator and report concerns confidentially through GOV.UK.

Where to find more information

For the latest statutory rates and employer guidance, visit:

• GOV.UK – National Minimum Wage and National Living Wage rates
• GOV.UK – The National Minimum Wage in 2026
• GOV.UK – Check Your Pay calculator

As with previous years, the rates are reviewed annually following recommendations from the independent Low Pay Commission before being implemented by the Government.

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