Third of employers plan to cut entry-level hiring after April’s minimum wage increase, research suggests
31 March 2026
The UK’s minimum wage will rise from 1 April by 4.1 per cent, taking the national living wage for those aged 21 and over to 12.71 an hour.
Those aged 18 to 20 will see an 8.5 per cent rise to 10.85, while 16- to 17-year-olds and apprentices will receive a 6 per cent increase to 8 an hour.
Chancellor Rachel Reeves said 2.7 million people will benefit from the increases, adding that “too many are struggling to make ends meet and that has to change”.
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For employers with large hourly-paid workforces, the increase will have a significant impact, said Bobby Ahmed, employment solicitor and managing director of employment law services company Neathouse Partners.
“Even where the hourly rate change looks modest on paper, the real cost impact can be wider once you factor in knock-on effects such as pay differentials for supervisors, overtime rates and pension contributions,” he said.
Charles Cotton, senior reward advisor at the CIPD, said businesses are already weighing up how to absorb the costs, including raising prices or reducing headcount. “The cumulative effect of wage rises alongside other extra costs will impact organisations,” he added.
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