280,000 workers in East Midlands to benefit from wage rises under Labour plans

A total of 280,000 workers on lowest incomes across the East Midlands will benefit from this Labour Government’s decision to increase both the National Living Wage (NLW) and National Minimum Wage (NMW).

Chancellor Rachel Reeves announced ahead of her Budget today [Wed] that she had accepted the recommendations from the Low Pay Commission and will introduce pay rises from 1 April 2026. 

The NLW will increase by 4.1% to £12.71 per hour for eligible workers aged 21 and over – meaning 250,000 workers in the East Midlands will benefit by up to £900 extra pay per year. 

The NMW for 18 to 20-year-olds will also increase by 8.5% to £10.85 per hour, seeing 30,000 workers in the region get an annual earnings increase of up to £1,500 – and also narrowing the gap with the NLW as this Government works towards phasing out the lower pay band for a single adult rate. 

The NMW for 16 to 17-year-olds and those on apprenticeships will also increase by 6% to £8 per hour. 

Chancellor Rachel Reeves said: “I know that the cost of living is still the number one issue for working people and that the economy isn't working well enough for those on the lowest incomes. Too many people are still struggling to make ends meet. And that has to change.  

“That's why today I'm announcing that we will raise the National Living Wage and also the National Minimum Wage, so that those on low incomes are properly rewarded for their hard work.”

The pay rise comes amid a raft of pre-Budget announcements focused on easing the cost of living, including freezing rail fares and prescription prices, as well as upgrading the Triple Lock for pensioners. 

Paul Nowak, General Secretary of TUC, said: “The government is delivering on its promise to make work pay. With living costs stubbornly high an above-inflation pay rise will make a real difference to the lowest-paid.

“Putting more money in people’s pockets is good for workers and good for the economy as it goes straight back into our high streets and local businesses, and sticking with plans to scrap youth rates is absolutely the right call. Young workers have bills like everyone else and deserve a fair day’s pay for a fair day’s work. It's right they see a larger rise as youth rates are phased out.”

Youth Employment UK said: "We welcome this increase, which is a vital and necessary step in the government's ongoing journey to make work pay for everyone. The evidence from our 2025 Youth Voice Census clearly shows that the cost of living and low pay remain major obstacles for young people entering the world of work, and this rise will provide much needed financial relief. 

“However, we also recognise the significant cost pressures this places on business, meaning the forthcoming Budget must provide the support and stability employers need to invest in youth jobs and training."