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UK to Raise Minimum Wage Rates Amid Hospitality Concerns

3/31/2026

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UK Raises Minimum Wage

From April 1, 2026, the UK will raise minimum wage rates.
The National Living Wage for workers aged 21+ will rise by 50p to £12.71 per hour, benefiting about 2.4 million.
The National Minimum Wage for 18–20-year-olds will rise to £10.85 per hour.
Under-18 workers will be paid £8 per hour.
UKHospitality warns the wage hikes could add about £4 billion in costs for the sector.

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ESRI Confirms Job Stability

The Economic and Social Research Institute (ESRI) found no evidence that Ireland's minimum wage increases caused job losses among low-paid workers, after six months of data.
The research, funded by the Low Pay Commission, found job security remained stable despite higher labor costs.
30% of workers under 20 were paid sub-minimum rates in 2025.
The Low Pay Commission welcomed the findings and reaffirmed its commitment to evidence-based wage policies.

History

Historical Context

The National Minimum Wage Act of 1998 established the UK's first national minimum wage at £3.60 per hour, effective from April 1999, following a Labour Party campaign promise. This legislation aimed to protect low-income workers and has since evolved, with the current minimum wage set at £11.44 per hour as of April 2024, reflecting ongoing efforts to address living costs and worker welfare.

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UK Raises Minimum Wage

From April 1, 2026, the UK will raise minimum wage rates.
The National Living Wage for workers aged 21+ will rise by 50p to £12.71 per hour, benefiting about 2.4 million.
The National Minimum Wage for 18–20-year-olds will rise to £10.85 per hour.
Under-18 workers will be paid £8 per hour.
UKHospitality warns the wage hikes could add about £4 billion in costs for the sector.

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