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Millions of workers across the UK will get up to £900 extra in their bank accounts from April 2026 in a major pay boost.

Chancellor Rachel Reeves has confirmed she has accepted recommendations from the Low Pay Commission and will increase minimum wage rates by 4.1% in the new tax year. Reeves said the boost will ensure those on low incomes are "properly rewarded" for their work. The pay boost will see the National Living Wage rise from £12.21 to £12.71 per hour for eligible workers aged 21 and over from April 2026, which the government said will increase gross annual earnings for a full-time worker on the rate by £900, benefiting around 2.4 million low-paid workers.

The National Minimum Wage rate for 18 to 20 year-olds will rise by 8.5% from £10 to £10.85 per hour, narrowing the gap with the National Living Wage.

It means that a full-time worker in this age group will see an annual earnings increase of £1,500, which the government said marks further progress towards its goal of phasing out 18 to 20 wage bands and establishing a single adult rate.

The National Minimum Wage for 16 to 17-year-olds and those on apprenticeships will also go up from April, rising by 6% from £7.55 to £8 per hour.

The National Living Wage applies to most workers whereas the National Minimum Wage is the minimum amount an employer must pay per hour for all workers aged below 21.

According to the government, the April 2026 increases will benefit 2.7 million young and older workers.

The Chancellor said: "I know that the cost of living is still the number one issue for working people and that the economy isn't working well enough for those on the lowest incomes. Too many people are still struggling to make ends meet, and that has to change.

"That's why today I'm announcing that we will raise the National Living Wage and also the National Minimum Wage, so that those on low incomes are properly rewarded for their hard work.

"These changes are going to benefit many young people across our country, getting their first job."