Living wage rise but workers warned real pay could fall to £10.59

From 1 April 2026 the national living wage for over‑21s will rise to £12.71 an hour, but experts say unpaid hours can cut some workers' effective pay to about £10.59 and the income tax personal allowance is frozen at £12,570 to 2031.

The national living wage for over‑21s is due to increase from £12.21 to £12.71 an hour from 1 April 2026. The government has frozen the income tax personal allowance at £12,570 through to 2031. Employment experts say unpaid or unrecorded hours and workload pressures mean some workers may see a lower effective hourly rate than the headline figure. Key facts: - National living wage will rise to £12.71 an hour for over‑21s from 1 April 2026. - Experts report that unpaid overtime and "invisible hours" can reduce the effective hourly pay for some workers to around £10.59 if contracted hours are regularly exceeded. - The personal tax allowance is frozen at £12,570 to 2031, which the Institute for Fiscal Studies says will bring more minimum‑wage workers into income tax. Summary: The scheduled wage increase and the tax freeze will both take effect on set dates, but experts say routine unpaid hours can reduce how much workers actually take home. The next formal changes are the living wage rise on 1 April 2026 and the maintained tax‑free allowance through 2031.