BREAKING: 2.7 million workers set for pay boost as National Living Wage rises

Thousands of low-paid workers across Torbay are set to receive a pay boost from April after the government confirmed increases to both the National Living Wage (NLW) and the National Minimum Wage (NMW).

Chancellor Rachel Reeves announced the changes in a video message today, saying the cost of living “is still the number one issue for working people” and pledging a Budget where "low incomes are properly rewarded for their hard work."

Under the plans, the National Living Wage for those aged 21 and over will rise by 4.1% to £12.71 per hour from 1 April 2026. The increase is expected to raise the annual earnings of a full-time NLW worker by about £900.

Younger workers will see the biggest percentage jump. The rate for 18–20-year-olds will increase by 8.5% to £10.85, giving a full-time worker an estimated £1,500 annual boost. The government says this continues its move toward phasing out age bands and introducing a single adult rate.

Sixteen- and seventeen-year-olds, along with apprentices, will see their minimum pay rise 6% to £8 per hour.

The Chancellor said the measures would benefit around 2.7 million workers, many of them young people entering the workplace for the first time.

“Too many people are still struggling to make ends meet,” she said. “And that has to change.”

Youth Employment UK welcomed the wage rise, calling it “a vital and necessary step” to help young people facing low pay and rising living costs, while urging the government to ensure the upcoming Budget provides further stability for employers.

The government says its wider economic plan includes securing new trade deals with the US, EU and India, capping corporation tax at 25%, reforming business rates and aiming for further interest rate cuts after five reductions since the election.

The government has recently introduced further measures to ease cost-of-living pressures, including freezing rail fares and prescription charges, and increasing state pensions through the Triple Lock.

The Budget will be unveiled tomorrow, with commitments to cut waiting lists, reduce national debt and ease pressure on household finances.