Analysis comes as two thirds of UK hospitality businesses say they plan to cut jobs due to cost pressures
2 April 2026
The UK’s minimum wage rise will have a ‘minimal’ impact on inflation and jobs, according to The Low Pay Commission (LPC), which said last spring’s increase did not significantly affect employment across the economy.
Despite concerns that the increase in the minimum wage would be particularly damaging to the hospitality sector, the LPC research found that more 18 to 20 year olds were working in hospitality than before the pandemic.
The UK’s minimum wage rose yesterday (1 April) by 4.1 per cent, taking the national living wage for those aged 21 and over to 12.71 an hour. For workers aged 18 to 20, it increased by 8.5 per cent to 10.85.
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Chancellor Rachel Reeves said 2.7 million people would benefit from the increases, adding that “too many are struggling to make ends meet and that has to change”.
This comes after ministers said last month they were considering slower minimum wage increases for younger workers because youth unemployment is rising.
Bobby Ahmed, managing director at HR services company Neathouse Partners, said businesses will face higher overall costs following the increase, especially those with large, hourly-paid workforces.
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