National Living Wage to rise in April 2026: what Exeter workers need to know

Exeter workers on low pay are set to see a significant income increase next year after Chancellor Rachel Reeves confirmed that both the National Living Wage and National Minimum Wage will rise from April 2026.

Under the changes, the National Living Wage for workers aged 21 and over will increase by 4.1 per cent to £12.71 an hour, equivalent to an annual uplift of around £900 for a full-time employee.

The National Minimum Wage for 18–20-year-olds will rise by 8.5 per cent to £10.85 an hour, providing an additional £1,500 a year for full-time workers. 

Rates for 16–17-year-olds and apprentices will also increase by 6 per cent to £8 an hour.

The government says the rise forms part of a wider plan to help tackle cost-of-living pressures, alongside recently announced freezes to rail fares and prescription charges. 

Ministers also said the increases support long-term economic growth by strengthening incomes while businesses benefit from corporation tax caps, business rate reforms, and new trade agreements with the US, EU and India.

In Exeter, the changes are expected to directly affect thousands of workers across sectors including retail, hospitality, care, logistics and other industries with traditionally lower-paid roles. 

Many residents say the increases could help meet essential costs such as rent, utilities and childcare, areas where affordability challenges remain high in the city.

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Exeter MP Steve Race welcomed the announcement, saying the increases will provide meaningful support for workers still struggling with day-to-day expenses: “I know that hard-working people in Exeter are still struggling to make ends meet or feeling the pinch.”

“While wages are growing at the fastest rate in over 3 years, there is more to do to tackle the cost of living. That’s why I’m delighted with the Chancellor’s announcement today that she is increasing both the National Living Wage and the National Minimum Wage.”

“Putting more money into people’s pockets helps to tackle poverty, raise living standards, and put more money into local businesses.”

Adding to this, Steve said: “The increase in the National Living Wage will be particularly important for young people who are just starting out in their careers and saving for their future homes.”

Youth employment groups have also broadly welcomed the rise, arguing that higher pay could make early-career roles more financially accessible and reduce the barriers young workers face when entering the job market.

The government is expected to provide further details in the Budget, including additional measures to support households and local businesses managing higher wage costs. 

Exeter employers, local organisations and workers will now be watching closely to understand how the new wage rates may affect jobs, spending and economic activity across the city.