November 27th 2025

By Ailsa Colquhoun

NMW to rise to £12.71 from April 2026

GP employers should plan for increases in the National Living Wage (NLW) and National Minimum Wage (NMW) from April 2026, after Low Pay Commission recommendations were accepted and announced by Chancellor Rachel Reeves in the November 2026 Budget.

The new rates, which apply from 1 April 2026, are as follows:

Making the recommendations, which are slightly below those forecast in May, the Low Pay Commission said it has heard employers’ struggle with higher labour and other input costs. They said it is getting harder to absorb rising costs in their profits, and that they are taking a cautious approach to headcount. The pressure on investment budgets is making employers more nervous about future growth and productivity increases.

In general, lower vacancy rates and weak recruitment but only mild rises in unemployment and redundancies have led to the characterisation of the labour market as “low hire, low fire”.

Elsewhere, GP leaders have welcomed the Chancellor’s hold on direct income tax and National Insurance increases, and that the rumoured new tax on limited liability partnerships did not materialise. However, employees may be affected by the freeze on income tax thresholds.

For the wider NHS, the Chancellor has pledged:

• All savings made in the NHS will be reinvested back into the service
• £300 million in investment in technology to improve patient services
• 250 new Neighbourhood Health Centres, with 100 delivered by 2030
• Prescription charges frozen for 2026-27