2.7m UK workers to get up to £900 pay boost as minimum wage increases to £12.71 (Image: Images By Tang Ming Tung via Getty Images)

Millions of employees across the UK are set to receive up to £900 extra in their bank accounts from April 2026, thanks to a significant pay increase. Chancellor Rachel Reeves has confirmed that she will accept recommendations from the Low Pay Commission to raise minimum wage rates by 4.1% in the new tax year.

Reeves stated that this boost will ensure those on low incomes are "properly rewarded" for their work. The pay rise will see the National Living Wage increase from £12.21 to £12.71 per hour for eligible workers aged 21 and over from April 2026.

The government has said this will increase gross annual earnings for a full-time worker on this rate by £9

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