For many people in Preston, discussions about the National Living Wage often feel distant—something decided in London, with little say from the communities it affects. But when the new rates come into force, the impact is felt directly at kitchen tables, in pay packets, and across local businesses.
From April 2026, the UK National Living Wage (NLW) will increase to £12.71 per hour for workers aged 21 and over. This change, announced by the Government following recommendations from the Low Pay Commission (LPC), marks a 4.1% rise from the previous year. And while it’s just one figure, the implications go far deeper, affecting thousands of workers and employers across Preston and beyond.
In this guide, we’ll break down exactly what these changes mean, how they were calculated, and what people in Preston should expect in 2026.
What Are the New National Minimum Wage Rates from April 2026?
The UK Government has officially confirmed the new minimum wage rates for April 2026, following the LPC’s advice submitted in October 2025. These rates apply across different age groups and employment categories and aim to protect the income of lower-paid workers while supporting broader economic goals.
Confirmed 2026 Wage Rates
| Worker Category | Hourly Rate from April 2026 | Increase (£) | Percentage Increase |
| 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% |
| Apprentice Rate | £8.00 | £0.45 | 6.0% |
| Accommodation Offset (Daily) | £11.10 | £0.44 | 4.1% |
These new wage levels reflect the UK Government’s continuing strategy to ensure that minimum pay rates remain closely aligned with broader earnings trends, while providing real-term improvements for workers.
Why Was the National Living Wage Increased to £12.71 in 2026?
The increase to £12.71 per hour for those aged 21 and over was driven by the Government’s commitment to ensure that the National Living Wage does not fall below two-thirds of median earnings. This policy target has been a cornerstone of wage policy in recent years and is intended to support fair pay without undermining employment opportunities.
The Low Pay Commission, an independent body, was asked to balance three primary goals:
- Ensure the NLW keeps pace with average earnings, particularly median wages.
- Account for cost-of-living trends, including inflation between April 2026 and April 2027.
- Consider the broader economic context, including business sustainability and labour market conditions.
In line with these objectives, the LPC recommended a 4.1% increase in the NLW, a figure designed to give workers a real-terms pay rise by outpacing inflation while remaining manageable for most employers.
What Evidence Did the Low Pay Commission Use to Recommend the 2026 Wage Levels?
The LPC’s decision was based on extensive evidence-gathering, consultation, and analysis. The economic backdrop in 2025 and 2026 has been mixed, and the Commission acknowledged the challenges both workers and businesses are facing.
Some of the key evidence and economic indicators considered include:
- GDP Growth: Forecasts indicate GDP growth of 1.4% in 2025 and 1.2% in 2026, which is below pre-2020 norms but an improvement on the 2023–2024 period.
- Labour Market Trends: The UK continues to experience a “low hire, low fire” environment, with fewer vacancies and lower job churn, particularly in consumer-facing sectors like retail and hospitality.
- Business Pressures: Rising operational costs, recent changes to National Insurance Contributions (NICs), and subdued consumer spending are affecting employer margins.
- Cost of Living: Ongoing pressure from energy bills, food prices, and housing costs continue to challenge household budgets, especially for lower-income earners.
The LPC’s data also showed that in areas like Preston, where low-paid work is common in service sectors, the increases would have a substantial positive effect, helping local workers keep up with rising expenses.
How Does the New Wage Impact Workers in Preston?
For workers in Preston, the increase to £12.71 per hour brings both relief and new opportunities. As one of the UK’s regional cities with a strong base of workers in retail, hospitality, healthcare, and logistics, a large number of local employees stand to benefit directly.
Here’s what the wage increase means in practical terms:
| Weekly Hours | Previous NLW (£12.21) | New NLW (£12.71) | Weekly Gain | Annual Gain |
| 37.5 hours | £457.88 | £476.63 | £18.75 | £975.00 |
| 40 hours | £489.60 | £508.40 | £18.80 | £977.60 |
This additional income can help households better manage their budgets, improve financial security, and offset some of the pressures of inflation.
However, while the financial increase is welcome, the reality remains that many Preston families continue to struggle with high living costs, limited access to affordable housing, and unstable working hours, especially in part-time and casual roles.
How Will Employers in Preston Be Affected by the 2026 Increase?
For employers in Preston, particularly small and medium-sized enterprises (SMEs), the 2026 increase represents a significant shift in operational costs. Many local businesses in hospitality, care, and retail already work with tight profit margins, and further wage increases require adjustments.
Some common responses from employers include:
- Reassessing staffing levels and work schedules
- Increasing prices of goods or services
- Reducing investment or expansion plans
- Exploring automation or process efficiencies
Despite these pressures, feedback to the LPC suggested that many businesses are more prepared for wage increases than for surprise policy changes like the NICs hike. Employers appreciate the transparency and timeline provided by the LPC process, allowing for better planning and budgeting.
What Does the 2026 Increase Mean for Young Workers and Apprentices?
While the NLW increase applies to workers aged 21 and over, the Government has also raised rates for younger age groups in line with its ambition to gradually extend the living wage to workers as young as 18.
Youth and Apprentice Wage Rates – 2026:
| Category | 2025 Rate | 2026 Rate | % Increase |
| 18–20 Year Olds | £10.00 | £10.85 | 8.5% |
| 16–17 Year Olds | £7.55 | £8.00 | 6.0% |
| Apprentices | £7.55 | £8.00 | 6.0% |
The Government intends to lower the NLW eligibility age to 20 in 2027, followed by a further extension to 18 and 19-year-olds between 2028 and 2029, subject to economic conditions.
In Preston, many young people work in entry-level positions or as apprentices, particularly in hospitality and care roles. These increases signal progress, but also highlight the need for stronger employment opportunities and skills development to support young workers facing a competitive job market.
What About the Accommodation Offset and Its Impact?
The Accommodation Offset, the amount employers can deduct from wages when providing accommodation will rise to £11.10 per day from April 2026.
While this aligns with the overall wage increase, the LPC has remained cautious about further raises, citing concerns about the quality and regulation of employer-provided housing. Stakeholders, including UK Hospitality, have called for better standards to ensure the deduction is justified and fair.
For workers in Preston who live in employer-provided housing, such as those in live-in care roles or hospitality jobs, this remains an important issue. The offset can significantly affect net pay, especially if accommodation quality is poor.
How Should Workers and Employers in Preston Prepare for These Changes?
With April 2026 approaching, both workers and employers should start planning now to avoid disruptions and make the most of the changes.
For Workers:
- Confirm you’re eligible for the correct wage based on your age and role.
- Track changes to your payslip starting in April 2026.
- If you’re unsure about your entitlements, contact ACAS, a union, or your HR representative.
For Employers:
- Update payroll systems to reflect new wage thresholds.
- Review contracts to ensure compliance with wage legislation.
- Factor increased wage costs into financial forecasts and staffing plans.
- Seek advice or grants available via local enterprise partnerships (LEPs).
Proactive planning can help reduce stress and support smoother transitions for businesses and employees alike.
What Does the New £12.71 Living Wage Mean for Preston’s Future?
The confirmed UK National Living Wage 2026 rate of £12.71 is more than just a number, it represents a significant policy moment for workers and employers across Preston. It offers the potential for greater financial security, increased economic participation, and a fairer local labour market.
However, this increase also brings challenges for businesses, particularly in sectors already under strain. It reinforces the need for support from local authorities, business groups, and central government to ensure Preston’s economy remains inclusive and resilient.
As the Government moves closer to expanding NLW eligibility to all adults over 18, the city will need to stay engaged in conversations about fair pay, job creation, and workforce development.
FAQs About the UK National Living Wage 2026
What is the National Living Wage in 2026?
The National Living Wage from April 2026 is £12.71 per hour for workers aged 21 and over.
Who sets the National Living Wage?
The Low Pay Commission advises the UK Government, which sets the final wage rates based on that advice.
Will the £12.71 rate apply to 18–20 year olds?
No, 18–20 year olds will receive £10.85 per hour in 2026. The Government aims to extend NLW eligibility to 20-year-olds in 2027.
How much more will workers in Preston earn?
A full-time worker (37.5 hours) on the new NLW will earn £975 more annually compared to the previous year.
Is the increase above inflation?
Yes, the 4.1% increase is above projected inflation, offering a real-terms pay rise.
Can employers legally pay less?
No. Paying below the legal minimum wage is against the law and subject to fines and enforcement action.
What support is available for employers?
Employers can seek financial advice, grants, and training programmes via local enterprise hubs and government initiatives.
{
“@context”: “https://schema.org”,
“@type”: “FAQPage”,
“mainEntity”: [
{
“@type”: “Question”,
“name”: “What is the National Living Wage in 2026?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The National Living Wage from April 2026 is £12.71 per hour for workers aged 21 and over.”
}
},
{
“@type”: “Question”,
“name”: “Who sets the National Living Wage?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The Low Pay Commission advises the UK Government, which sets the final wage rates based on that advice.”
}
},
{
“@type”: “Question”,
“name”: “Will the £12.71 rate apply to 18–20 year olds?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “No, 18–20 year olds will receive £10.85 per hour in 2026. The Government aims to extend NLW eligibility to 20-year-olds in 2027.”
}
},
{
“@type”: “Question”,
“name”: “How much more will workers in Preston earn?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “A full-time worker (37.5 hours) on the new NLW will earn £975 more annually compared to the previous year.”
}
},
{
“@type”: “Question”,
“name”: “Is the increase above inflation?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Yes, the 4.1% increase is above projected inflation, offering a real-terms pay rise.”
}
},
{
“@type”: “Question”,
“name”: “Can employers legally pay less?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “No. Paying below the legal minimum wage is against the law and subject to fines and enforcement action.”
}
},
{
“@type”: “Question”,
“name”: “What support is available for employers?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Employers can seek financial advice, grants, and training programmes via local enterprise hubs and government initiatives.”
}
}
]
}
