Draft National Minimum Wage (Amendment) Regulations 2026

Charlie Dewhirst Excerpts

Monday 2nd March 2026 General Committees

[Charlie Dewhirst (Bridlington and The Wolds) (Con)]

I represent a seaside town, Bridlington, to which five million visitors come every year. It has a fantastic, successful seasonal economy that creates a large number of jobs for young people in the town every summer. Is there not a danger that the significant increases in the minimum wage for 16 to 18-year-olds and 18 to 20-year-olds will disincentivise local employers from giving young people opportunities to get on that first rung on the jobs ladder?

[Kate Dearden]

I pay tribute to the businesses in the hon. Gentleman’s constituency that provide those opportunities for young people. Of course, the Government sets the remit and the Low Pay Commission, as an independent body, provides guidance on the rates to ensure that we can provide a real-terms increase for people no matter what their age. We recognise that people of different ages should not be paid a different rate for the same time, while ensuring that the rates take into account the implications for young people getting the opportunity to get on the job ladder. We made that clear in the remit.

I mentioned that the rate for those above school-leaving age will increase to £8 an hour, and the same applies to the apprentice national minimum wage, which applies to apprentices who are under the age of 19 or in the first year of their apprenticeship. Finally, the accommodation offset rate, which is the maximum daily amount that an employer can charge a worker for accommodation without it affecting their pay for minimum wage purposes, will increase from £10.66 to £11.10.

The Department for Business and Trade published an impact assessment alongside the regulations. It includes a full equality assessment and received a green “fit for purpose” rating from the independent Regulatory Policy Committee. The Government estimate that this year’s national living wage and national minimum wage increases will provide a direct pay increase for approximately 2.7 million workers, with a further 5.1 million workers potentially benefiting from positive spillover effects as employers maintain pay differentials. We are really proud to protect working people in every corner of the United Kingdom. We estimate that 180,000 workers in Scotland, 140,000 workers in Wales and 140,000 workers in Northern Ireland will directly benefit from the changes.

It was a Labour Government that fought against opposition to bringing in the minimum wage when it was introduced in 1999. The headline rate—at the time, for workers aged 22 and over—was £3.60 an hour. As well as more than trebling in cash terms, based on current forecasts this year’s national living wage is expected to be 80% higher in real terms than the top rate in 1999. In hourly terms, the share of low-paid jobs has dropped from 21.9% in 1999 to just 2.5% last year. It is a testament to the success and effectiveness of the policy, over more than a quarter of a century, that all this has been achieved without the damage to the economy and the labour market that some people predicted at the time. The work continues, of course, and we will keep making progress on our manifesto commitments in this space to deliver a genuine living wage that works for employers and workers alike.

The Government will publish a new remit for the Low Pay Commission in due course. We will ask for recommendations on the national living wage and national minimum wage rates, thereby ensuring that our decisions our backed by evidence and consistent with delivering inclusive growth for working people and competitive businesses across the UK. As usual, we will ask the LPC to make its recommendations by October. The Government will subsequently confirm the new national living wage and national minimum wage rates for April 2027, ensuring there is sufficient notice for employers and workers.

We are grateful to all the employers, worker representatives and other stakeholders who engage thoughtfully with the LPC’s consultation each year, ensuring that the Government can balance the various concerns appropriately. We are proud to be driving reforms to the employment rights landscape and delivering for workers, employers and the wider economy. I commend the regulations to the Committee.