The Government has announced that it has accepted the Low Pay Commission’s recommendations on the future rate of the National Living Wage, increasing the headline rate by 50p to £12.71 per hour in April 2026, says Association of Convenience Stores (ACS).
In its submission and oral evidence to the Commission earlier this year, ACS outlined the measures that retailers are taking when faced with significant increases in their wage bills. This year’s increase has been particularly challenging for many local shops, as the National Living Wage increases were coupled with increases in Employer National Insurance Contributions (NICs) and a reduction in the threshold at which they start paying NICs. The most common consequences of increases in employment costs this year for retailers and consumers have been taking lower profits, increasing prices, and reducing the number of staff hours in the business.
ACS’ evidence called on the Commission to take a measured approach to future headline rate recommendations that doesn’t exceed the current two-thirds of median earnings target and explicitly takes into account the impact of rising employment costs on businesses. ACS has also recommended a phased approach to NLW eligibility, so that one age group at a time is brought into being eligible for the headline NLW rate instead of a direct jump to 18 year-olds receiving the full NLW rate.
The £12.71 per hour headline rate of the National Living Wage announced today is consistent with the central estimate predicted by the Commission earlier this year.
From 1 April 2026, the new National Living Wage and Minimum Wage rates will be:
- The NLW will rise by 4.1% to £12.71 per hour for eligible workers aged 21 and over (currently £12.21 per hour)
- The NMW rate for 18–20-year-olds will also increase by 8.5% to £10.85 per hour (currently £10 per hour)
- The NMW for 16–17-year-olds and those on apprenticeships will increase by 6% to £8 per hour (currently £7.55 per hour)
The Chancellor is expected to announce details of a new permanent Retail, Hospitality and Leisure multiplier for business rates in the Budget, which ACS has called on the Government to set at 20p lower than the standard level.
Full details on the National Living Wage rates are available here: https://www.gov.uk/national-minimum-wage-rates