From 1 April 2026, new statutory pay rates will come into effect across the UK, increasing both the National Minimum Wage (NMW) and the National Living Wage (NLW). These annual updates are an important compliance requirement for employers and will have direct implications for payroll, workforce planning, and financial forecasting in the 2026/27 financial year.

For organisations operating in the health and social care sector, where a large proportion of the workforce is paid on hourly rates, these increases can have a particularly significant operational and financial impact. Early preparation is therefore essential to ensure payroll systems, budgets and pay structures are aligned ahead of the new financial year.

At HLTH Compliance, we work closely with healthcare providers and social care organisations across the UK to help them navigate regulatory and operational changes such as these.

The New Minimum Wage Rates from April 2026

The applicable hourly rate depends on a worker’s age and whether they are employed as an apprentice.

These new rates must be paid for all eligible pay reference periods beginning on or after 1 April 2026. Employers should ensure payroll systems are updated in advance to avoid inadvertent underpayment.

National Living Wage vs the Real Living Wage

Employers should also understand the distinction between the statutory National Living Wage and the voluntary Real Living Wage promoted by the Living Wage Foundation.

National Living Wage (NLW)

• A legal minimum set by the Government

• Applies to workers aged 21 and over

Real Living Wage

• Voluntary and independently calculated each year

• Based on the actual cost of living

• Applies to workers aged 18 and over

Some organisations choose to become accredited Living Wage Employers, committing to pay the higher voluntary rates. For many employers this can support:

• Demonstrating corporate social responsibility

• Improving staff recruitment and retention

• Supporting employee wellbeing during periods of rising living costs

However, accreditation requirements and rates are separate from statutory minimum wage obligations and should be reviewed independently.

Understanding the Apprentice Rate

The apprentice minimum wage rate applies in the following circumstances:

• Apprentices under the age of 19, or

• Apprentices aged 19 or over who are in the first year of their apprenticeship

For example:

• A 21-year-old apprentice in their first year is entitled to the apprentice rate (£8.00 from April 2026).

• A 21-year-old apprentice who has completed the first year must be paid the National Living Wage (£12.71 from April 2026).

Employers should ensure they are accurately tracking apprenticeship start dates and progression, as underpayment often occurs when an apprentice transitions into their second year.

What These Changes Mean for Employers

Increased Payroll Costs

The rise to £12.71 per hour for workers aged 21 and over represents a meaningful uplift in baseline pay. For organisations with a large hourly-paid workforce, this can significantly increase annual payroll costs.

Budget planning for 2026/27 should account for:

• Higher base salary costs

• Increased employer National Insurance contributions

• Higher pension contributions linked to qualifying earnings

• Potential pay compression between junior and supervisory roles

Pay Structure Reviews

When minimum wage thresholds rise, it can have a knock-on effect across the entire pay structure.

Employers may wish to review:

• Pay bandings and grading frameworks

• Salary differentials between roles

• Recruitment and retention strategies

• Progression pathways for senior care or supervisory staff

This is particularly relevant within health and social care services, where pay scales are often tightly structured around entry-level roles such as care workers.

Payroll Compliance

Payroll systems must be updated to reflect the new statutory rates from 1 April 2026.

Employers should:

• Confirm updates with their payroll provider or software system

• Audit age-related pay categories

• Review apprentice eligibility status

• Check any sleep-in, shift allowance, or variable pay arrangements

Failure to pay the correct minimum wage can lead to:

• Repayment orders

• Financial penalties

• Public naming by HMRC

• Reputational damage

Communication with Employees

Transparent communication helps maintain trust and clarity within the workforce.

Employees are often aware of the annual April wage increases and may expect confirmation of how this affects them. Employers may wish to issue pay notifications or payroll updates ahead of April to reduce queries and demonstrate proactive compliance.

Preparing for April 2026

Annual increases to the National Minimum Wage and National Living Wage are a routine but significant compliance obligation for employers. Early preparation will help ensure payroll systems, workforce planning and financial forecasting are aligned with the new requirements.

At HLTH Compliance, we support health and social care providers with navigating employment law changes, workforce compliance, and operational governance.

If your organisation would like support with:

• Reviewing pay structures

• Assessing the financial impact of the April 2026 wage increases

• Conducting a minimum wage compliance audit

• Ensuring your HR and payroll systems remain compliant

our team is here to help you navigate these upcoming changes with confidence.

You can contact HLTH Compliance to arrange a discussion with our HR Director to ensure your organisation is fully prepared for the April 2026 wage changes.