National Living Wage and Minimum Wage increasing from April with new employment legislation also introduced

The National Living Wage and National Minimum Wage increased from the start of April, with a number of measures under the Employment Rights Act also introduced from this month.

From 1 April 2026, updated wage rates came into force, with the National Living Wage for those aged 21 and over rising to £12.71 per hour, the 18–20 rate increasing to £10.85, and both the 16–17 rate and apprentice rate rising to £8.

Further changes will follow on 6 April 2026 as key provisions within the Employment Rights Act 2025 take effect, including reforms to statutory sick pay, paternity leave, unpaid parental leave, bereaved partners’ paternity leave, and new requirements for employers to maintain adequate holiday pay records.

The Government is also announcing the Fair Work Agency, launching on 7 April 2026, which will bring together employment rights enforcement into a single body aimed at improving compliance and simplifying oversight for businesses and workers.

In a recent correspondance, the Department for Business and Trade said: “The Government is committed to ensuring that all changes to employment rights follow a pragmatic, phased approach and to ensuring support and guidance is available to all employers seeking to understand how these changes will impact their business, and to workers who want to learn about their new rights.”

The Government is continuing to consult with stakeholders on further reforms, and is encouraging businesses to share their views via ongoing consultations, with several, including those on flexible working and agency work, closing in the coming weeks.

Retailers can access practical support and prepare for the changes through official Government guidance, which outlines what employers need to do now and ahead of future reforms, including unfair dismissal changes expected in January 2027.

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