Minimum wage rises to £12.71 an hour as firms warn of impact

Around 2.7 million people are set to receive a pay rise this week as the national minimum wage goes up by 50p to £12.71 for over 21s. Workers aged 18-20 will see an 85p rise to £10.85, and under-18s and apprentices will get 45p more to £8 an hour. Young workers welcomed the rise, but some expressed concern about fewer job opportunities, while businesses said higher wage bills will force them to increase prices or cut staff. The Low Pay Commission, the government agency which recommended the increases, said previous minimum wage rises for over-21s had "not had a significant negative impact on jobs". Ifunanya Ezechukwu, 25, said the rise was a "step in the right direction". "Especially with the cost of living being really bad, people need more money so they can actually afford the basics," she told BBC Newsbeat. She doesn't think employers paying staff more will necessarily translate to fewer jobs. "I feel like they're probably just going to up the prices of their services, so I don't think there'll be less job opportunities," she says. "I just feel like some things might get more expensive, which is unfortunate, and then the cycle just continues." Alex McCarthy, a university student

Apr 1, 2026 → Apr 1, 2026