Minimum wage, state pension and benefits due to go up in April 2026

The government has announced increases to the minimum wage, state pension, and benefits. These updates are designed to help with rising costs and give people a bit more breathing room. Here’s a breakdown of what’s changing and how much more you could get depending on your circumstances.

Minimum wage – what's changing?

The minimum wage is going up by at least 4.1% depending on your age. People aged between 18-20 will see the biggest increase (8.5%) from next year. This is part of the government’s plan to close the gap between age groups. The goal is to bring younger rates closer to the National Living Wage over the next few years.

Here are the rates from April 2026:

• If you’re 21 and over, you’ll be paid £12.71 per hour from April 2026 which is a 4.1% increase from the current £12.21 per hour (or an extra 50p)
• If you’re 18-20, you’ll be paid £10.85 per hour from April 2026 which is an 8.5% increase from the current £10 per hour (or an extra 85p)
• If you’re 16-17 years old or an apprentice, you’ll be paid £8 per hour which is a 6% increase from the current £7.55 per hour (or an extra 45p)

If you’re a full-time worker aged 21 or over, you could be earning nearly £25,000 on a typical 37.5 work week. This amounts to nearly £1,000 more per year before tax.

State pension – a boost for retirees

The state pension will rise by 4.8% in April 2026 in line with the government’s triple lock promise.

The New State Pension, for those who retired after April 2016, will go up to from £230.25 to £241.30 per week. That’s about £12,548 a year, up by £575.

The Basic State Pension, for those who retired before April 2016, will go up from £176.45 to £184.90 per week. That’s about £9,615 a year, up by £440.

Benefits up by at least 3.8%

If you’re claiming benefits, most will go up by 3.8% from April 2026. This is in line with September’s inflation figures.

However, people on Universal Credit will see an above-inflation boost of 6.2% for the standard allowance. From April 2026, single people aged 25 or above will get £424.90 per month, up from £400.14 currently. Couples where at least one partner is aged 25 or above will receive £666.97, up from £628.10.

The above-inflation boost is due to a welfare reform introduced through the Universal Credit Act 2025. It was brought in because the government wants to give people on Universal Credit a stronger base level of support. Above-inflation increases to the standard allowance portion of Universal Credit are planned to last until 2029/30.

These changes mean a little extra support for many people – whether you’re working, retired, or claiming benefits.