National Living Wage Rises to £12.71 Today — Here's What Changed on 6 April

The April 2026 changes at a glance

Several significant changes came into effect from April 2026, designed to ease cost of living pressure on lower-income households:

• National Living Wage: Up 4.1% to £12.71/hour (for workers aged 21+)
• National Minimum Wage (18–20): Up to £10.00/hour
• State Pension: Up 4.8% to £241.30/week (new full rate)
• Universal Credit two-child limit: Abolished — all children now included in claims
• Energy price cap: Down 6.6% to £1,641/year

What the wage rise means in practice

A full-time worker (37.5 hours/week) on the National Living Wage will earn approximately £24,773/year before tax — an increase of around £1,025/year compared to the previous rate.

In take-home terms (after income tax and National Insurance), that's roughly an extra £70–£80/month in your pocket.

The State Pension increase

The State Pension triple lock — which guarantees the pension rises by the highest of inflation, earnings growth, or 2.5% — delivered a 4.8% increase this year, driven by earnings growth.

The full new State Pension is now £241.30/week (£12,547/year). Pensioners on the older basic State Pension will also see increases, though the exact amount depends on their NI contributions record.

If you're within five years of State Pension age, it's worth requesting a State Pension forecast on GOV.UK to see your projected entitlement.

Universal Credit: two-child limit removed

The removal of the two-child limit on Universal Credit is a significant change for larger families. Previously, UC payments were capped at two children; from April 2026, all dependent children are included in claims.

Affected families should already see the increase reflected in their Universal Credit payments. If not, contact the UC helpline.

What you should do now

1. Check your payslip — make sure your employer has implemented the new minimum wage rate
2. Update your budget — if your income has increased, redirect the extra to debt repayment or savings before lifestyle creep takes it
3. If you're a pensioner — verify your pension payment reflects the new rate; it should appear in your April payment
4. If you have 3+ children and claim UC — check your award letter to confirm the additional child element has been added

The bottom line

These changes are genuinely positive for lower-income households. The key is to make the extra money work — don't let it disappear into day-to-day spending. Even £50/month redirected to an ISA or emergency fund makes a meaningful difference over 12 months.