Care providing businesses should prepare now for significant increases in the National Minimum Wage (NMW) and National Living Wage (NLW), confirmed as part of the government’s Autumn Budget. Chancellor Rachel Reeves accepted the Low Pay Commission’s latest recommendations, which will come into effect from 1 April 2026. These changes will directly impact staffing costs across the care sector, especially for those roles currently paid at or near the statutory minimum.
The new minimum wage rates from April 2026 are as follows:
| Age/Category | New Hourly Rate (from Apr 2026) | Increase | % Rise |
| National Living Wage (21+) | £12.71 | +£0.50 | 4.1% |
| 18–20 year olds | £10.85 | +£0.85 | 8.5% |
| 16–17 year olds | £8.00 | +£0.45 | 6.0% |
| Apprentices | £8.00 | +£0.45 | 6.0% |
| Accommodation offset* | £11.10 (per day)* | +£0.63 | 6.0% |
*The accommodation offset is the maximum daily amount an employer can count towards minimum wage calculations when providing accommodation to a care professional.
These increases continue the government’s drive to improve pay for lower-income workers, while aiming to maintain employment levels and economic stability. Providers are advised to review staffing budgets, payroll systems, and recruitment plans well ahead of April 2026 to ensure compliance and financial sustainability.