The UK’s national living wage may increase by more than 50p an hour starting from next year, according to the Low Pay Commission.
Based on an annual report released by the advisory body, workers could see a 4.1 per cent increase in their hourly wages in 2026, so that wages don't drop by two-thirds of median earnings.
Taking into account things such as the cost of living and inflation forecasts, the Low Pay Commission estimates that living wages may increase to £12.71 an hour from 2026.
However the commission also acknowledged that the upcoming increase may actually be to anywhere between £12.55 and £12.86 depending on the state of the economy at the time.
Ministers speaking on the topic said: “The Government is committed to raising the living standards of working people, and this is the key focus of the Government’s Growth Mission.
“That is why the Government asks the Low Pay Commission to ensure that the National Living Wage rate does not drop below two-thirds of UK median earnings for workers in the National Living Wage population, a recognised measure of low hourly pay.”
But what exactly is the current national living wage? And how much are workers actually entitled to?
What is the national living wage?
The UK national living wage (NLW) is the minimum amount of hourly pay that workers over the age of 21 in the UK are legally entitled to.
The NLW is determined by the government, which uses recommendations from the Low Pay Commission to assess how much to increase the rates by each year.
It was first established in 2016 by the Conservatives, who renamed the minimum wage for over-25s to the ‘national living wage’ at the time. In the following years, this was applied to workers 21 and older.
There’s no London weighting on the NLW, meaning that even those in London are only entitled to this amount, despite often incurring increased living costs.
The main difference between the NLW and the current UK minimum wage is that the latter is the baseline used for workers between the ages of 18 and 20 (and currently sits at £10 an hour).
More confusingly, there’s also the ‘Real Living Wage’ which is different to the NLW. This is a voluntary benchmark established by economists who have calculated the real cost of living to determine the wages that workers should earn.
According to the Living Wage Foundation, the real living wage for workers in the UK in early 2025 sat at around £12.60, while the London living wage is £13.85. These are optional increases, paid at the discretion of employers.
How much is the current UK national living wage?
The UK government introduced the current UK national living wage in April 2025, and it now sits at £12.21 an hour.
It means that if a worker over the age of 21 earns this hourly rate throughout the year, they’ll be taking home a little over £24,000 a year before tax.
When will the living wage increase?
National living wage and minimum wage rates change on April 1 every year.
This means the subsequent wage increase can be expected in April 2026.
