It’s that time of year when employment law changes traditionally take effect, and this year we’re expecting more than usual thanks to the introduction of the Employment Rights Act 2025.

It’s that time of year when employment law changes traditionally take effect, and this year we’re expecting more than usual thanks to the introduction of the Employment Rights Act 2025.

With so many developments on the horizon, here’s our summary of the most important changes that are taking effect in Great Britain (GB) next month.

While most of these changes will apply only in GB, some changes are also relevant to Northern Ireland (NI). We have highlighted where this is the case, or where other similar changes are expected under Northern Irish employment reforms.

Increases to statutory rates

From 1 April 2026, we will see increases to the National Minimum Wage. These are as follows:

• the National Living Wage (NLW) will increase from 12.21 to 12.71 per hour;
• the 18 to 20 year old rate will increase from 10.00 to 10.85 per hour; and
• the 16 to 17 year old rate will increase from 7.55 to 8.00 per hour.

The accommodation offset limit will also rise to 11.10 per day.

The government originally promised to phase out the 18 to 20 year old minimum wage, so that all over-18s would benefit from the NLW by 2028 or 2029. However, media speculation suggests this change could be delayed given high levels of youth unemployment.

Minimum wage enforcement will soon be transferring to the new Fair Work Agency...

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