The government has confirmed updated National Minimum Wage and National Living Wage rates, due to come into force on 1 April 2026. Every pay band will increase.

For health and social care providers, these changes require early attention. Workforce costs already sit at the centre of service delivery, and minimum wage uplifts can have a direct impact on staffing models, commissioning viability, and regulatory compliance.

The new minimum wage rates from April 2026

• Age 21 and over: £12.21 → £12.71 per hour
• Age 18–20: £10.00 → £10.85 per hour
• Age 16–17 and apprentices: £7.55 → £8.00 per hour

While the increases may appear modest, their cumulative effect across rotas, enhanced rates, and unsocial hours can be significant for care homes, domiciliary care providers, GP practices, clinics, and wider regulated services.

Why this matters specifically for health and social care

Minimum wage changes affect health and social care differently from many other sectors due to high staffing ratios, regulated roles, and fixed or slow-moving income streams.

Key sector-specific considerations include:

Workforce-heavy cost bases

Staffing costs typically represent the largest area of expenditure for providers. Even small hourly increases can materially affect monthly payroll, particularly for services operating 24-hour rotas or providing community-based care.

Pay differentials and role progression

Minimum wage uplifts often compress pay differentials between care staff, senior carers, team leaders, and supervisors. If not managed carefully, this can impact morale, retention, and perceived fairness across teams.

Commissioning and fee constraints

Many providers operate within local authority or NHS commissioning frameworks where fee uplifts do not always align with statutory wage increases. This places additional pressure on internal workforce planning and cost control.

Compliance and regulatory expectations

CQC and other regulators expect providers to demonstrate safe staffing, fair pay practices, and robust governance. Errors in pay compliance, particularly around minimum wage thresholds, sleep-ins, or unpaid working time, can quickly escalate into regulatory risk.

What providers should be reviewing now

• Early preparation reduces risk and avoids last-minute pressure ahead of April 2026.
• Pay and staffing structures
• Identify roles currently paid close to the new thresholds and consider the wider impact on senior roles, bank staff, and agency usage.
• Unsocial hours and enhancements
• Review how enhancements, overtime, sleep-ins, and on-call arrangements interact with minimum wage compliance. These areas remain a common source of error in health and social care.

Contracts and documentation

Ensure employment contracts, staff handbooks, and pay-related policies accurately reflect current rates and working arrangements.

Manager readiness

Frontline managers are often the first point of contact for pay-related questions. They should be equipped with clear, consistent messaging and an understanding of how the changes apply within your service.

Practical actions to take ahead of April 2026

Health and social care providers should consider:

• Reviewing pay structures and role differentials across services
• Updating payroll systems in advance of the new rates
• Identifying staff close to the new minimum thresholds
• Checking compliance for bank, agency, and flexible workers
• Ensuring accurate recording of working time and paid hours
• Proactive planning supports continuity of care, workforce stability, and regulatory confidence.

How HLTH Compliance can support

HLTH Compliance works with health and social care providers to support compliant, practical workforce planning. Our HR team can assist with:

• Reviewing and updating employment contracts and HR policies
• Advising on maintaining appropriate pay differentials
• Supporting manager guidance and staff communications
• Identifying and addressing minimum wage compliance risks

If you would like support preparing for the April 2026 minimum wage changes, our team is available to help you plan with clarity and confidence.

Please contact HLTH Compliance to discuss how we can support your organisation.