FX.co ★ UK Government Approves 4.1% Minimum Wage Rise Starting April 2026

The United Kingdom is set to increase its main minimum wage rate by 4.1% next April, elevating it to £12.71 ($16.67) an hour. This adjustment aims to align with average pay in the country, as confirmed by the government on Tuesday, according to Reuters. Despite concerns from some employers that this raise may lead to higher prices, the decision reflects an ongoing trend. Since 2019, Britain's minimum wage has increased by over 60%, making it the second-highest in Europe relative to average wages. This strategy stems from successive governments’ efforts to bring the wage to two-thirds of median hourly earnings. Finance Minister Rachel Reeves emphasized the necessity of this latest rise, which follows an earlier 6.7% increase this year, highlighting its aim to ensure equitable compensation for those on lower incomes. Approximately 2.4 million workers aged 21 and above will benefit from this increase, alongside an additional 300,000 apprentices and workers under 21, who will see their wages boosted by 6.0% to 8.5% as the government continues the gradual elimination of lower minimum wages for these demographics.