National pay rise to boost wages for workers across Devon and the South West

Workers across the UK are set to receive a pay boost from April 2026 after the Chancellor has confirmed today (November 25) an increase to both the National Living Wage and the National Minimum Wage.

This means that from 1 April 2026, the National Living Wage (NLW) will rise by 4.1 per cent to £12.71 per hour for eligible workers aged 21 and over. 

For a full-time worker on the NLW, this will increase gross annual earnings by around £900, benefiting roughly 2.4 million low-paid workers.

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The National Minimum Wage (NMW) for 18–20-year-olds will also rise by 8.5 per cent to £10.85 per hour, narrowing the gap with the NLW. 

This increase equates to an extra £1,500 per year for a full-time worker and represents further progress towards the government’s goal of phasing out 18–20 wage bands and establishing a single adult rate. 

Meanwhile, the NMW for 16–17-year-olds and apprenticeships will increase by 6 per cent to £8 per hour.

The increase is expected to have a significant impact in the South West, where many workers in retail, hospitality, agriculture, social care and tourism earn wages at or near the national minimum.

The Treasury says around 2.7 million workers nationwide will see their pay rise. 

Chancellor Rachel Reeves outlined the plans in a video message shared earlier today:“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.

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“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.”

“For a full-time worker on the National Living Wage, the Treasury says the change is worth around £900 a year. For a full-time worker on the National Minimum Wage, it is worth about £1,500.

Data from the House of Commons shows that around 6.9 per cent of roles in the South West are paid at or below the national minimum wage, placing them at 7th out of 12 regions in the UK.

In Devon, average wages remain below the national average, according to ONS data, the median weekly pay for full-time workers living in the region is £702, compared with £767 nationally.

Devon MPs have reacted to the announcement, highlighting what it could mean for workers in the region.

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Rebecca Smith, MP for South West Devon, told The Moorlander:

“While any move that helps low-paid workers keep up with the rising cost of living is welcome, the Government must also be honest about the pressures facing small and medium-sized businesses. Many employers in my constituency are already struggling with higher energy costs, higher inflation and increased national insurance costs.

Raising the National Living Wage should go hand-in-hand with a clear plan to support the businesses expected to deliver it. At the moment, we simply haven’t seen that from the Government. As we approach the Budget tomorrow, I’ll be looking closely at whether the Chancellor addresses these mounting financial pressures and sets out a credible strategy that protects jobs, supports growth, and allows businesses to thrive.”

Sir Geoffrey Cox KC, MP for Torridge and West Devon, and  Sir Mel Stride, MP for Central Devon and Shadow Chancellor were also approached by The Moorlander for comment.

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Impact on Local Businesses

While many local workers will welcome the increase, the South West’s business community will likely view today’s announcement with a mixture of support and concern.

Small employers, who make up a portion of the region’s business landscape, have been dealing with high operating costs in recent years.

This includes rising energy bills, increased food supply prices, transport costs and higher borrowing costs.

Sectors such as cafés, pubs, holiday parks, independent shops, farm businesses and care providers are expected to feel the effects most sharply.

The Devon & Plymouth Chamber of Commerce were approached by The Moorlander for comment.

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Many South West businesses have been asking the government for long-term support on business rates, energy costs and local investment to help them manage wage increases sustainably.

South West Economic Context

The cost-of-living challenge remains acute in many parts of Devon. 

Local charities have raised the alarm as 5 per cent of households in Devon say they have recently used a food bank, according to a county-wide food and fuel insecurity report from One Northern Devon

Meanwhile, rural areas across Devon and the South West are under dual cost pressure, with research from the Rural Services Network showing that many rural households face higher heating bills and spend roughly 50 per cent more on transport per week, largely due to a reliance on cars. 

Fuel poverty is also particularly acute in rural Devon, as, in West Devon, 12.3 per cent of homes are estimated to be in fuel poverty, putting further strain on local families.

Workers and businesses in Devon will be monitoring how the new rates affect household incomes and operating costs.