Thorn Baker Group: Minimum Wage Changes from

From 1st April 2026, we see the usual round of annual changes to minimum wage and statutory payments. These increases form part of the Government’s ongoing “Plan to Make Work Pay”, with a continued focus on lifting lower-paid workers and gradually reshaping wage structures.

Most businesses will already be aware of this, but as always, it’s worth looking at the detail - because that’s where the impact tends to sit.

Minimum Wage Rates (from 1 April 2026)

The new hourly rates are:

£12.71 for workers aged 21+ (up from £12.21)
£10.85 for 18–20 year olds (up from £10.00)
£8.00 for 16–17 year olds and apprentices (up from £7.55)
£11.10 accommodation offset (up from £10.66)

On the surface, the headline increase for 21+ sits at around 4.1%, but the more notable movement is underneath that:

18–20 rate increasing by 8.5%
16–17 / apprentice rate increasing by 6.0%

That continued shift towards narrowing the gap between age bands is where this becomes more than just an annual uplift.

Statutory Pay Increases (from April 2026)

Alongside minimum wage increases, statutory payments are also rising:

Statutory Sick Pay (SSP): £123.25 per week
Statutory maternity, paternity, adoption, shared parental and related payments: £194.32 per week

At the same time, key thresholds such as Personal Allowance and NI bands remain largely unchanged.

So while pay increases, much of the surrounding framework stays static, which is where cost pressure can start to build more gradually.

Other Key Payroll Thresholds

From the new tax year:

Personal Allowance: £12,570 (unchanged)
Basic rate threshold: £37,700
Higher rate threshold: £50,270
NI thresholds remain largely frozen

So while wages increase, many thresholds remain static - which is where cost pressure quietly builds.

What’s different this time?

This isn’t about the fact that rates are increasing - that happens every year, what stands out in 2026 is the shape of the increase.

The faster movement in younger age brackets, alongside a clear direction to bring those closer to the adult rate, means:

Entry-level roles are rising faster
Pay gaps are tightening
And structures that worked last year don’t always hold the same way this year

It’s not dramatic. But it is noticeable.

How this tends to play out

From a recruitment perspective, this is where we’re seeing most of the conversation. Not around “What are the new rates?”, but around “What does this do to everything else?” Because in practice, it often leads to:

Pressure on pay differentials
Rebalancing of roles and rates
Increased cost across temporary and permanent labour
And more scrutiny on how workforce is structured

Particularly across construction, industrial and FM - where labour is a core cost - these shifts don’t go unnoticed.

The April changes themselves won’t catch anyone off guard. But the detail underneath them, particularly how different parts of the workforce move at different speed, is where the real impact tends to sit.

And, as always, that’s what’s worth keeping an eye on.

If it’s useful to compare notes on how this is landing across the market, we’re always happy to have a conversation.