Four rate rises for 2026 you should watch out for

The “April Squeeze” has come—is your pay structure ready?

On 1 April 2026, the National Living Wage jumps to £12.71 an hour. A higher minimum wage is great for new starters, but it rapidly closes the pay gap between entry-level staff and their managers. If the gap between a trainee and a supervisor becomes too small, your most valuable ‘skilled middle’ will likely be looking at the door.

We have highlighted the four essential rate changes you need to know to keep your budget on track and your team motivated. These include:

  • National minimum wage rises
  • Cap on a week’s pay for statutory redundancy pay increases
  • Statutory maternity pay increases
  • Statutory sick pay changes and increases
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