10 Autumn Budget | 26 November 2025 Welfare and labour markets National living wage (NLW) and national minimum wage (NMW) Significant increases to the NLW and NMW were announced the day before the Budget on 25 November 2025. Rate Age £ per hour from 1/4/26 Increase over 2025/26 NLW 21 and above £12.71 4.1% NMW 18–20 £10.85 8.5% 16–17 £8.00 6.0% Apprentice rate All £8.00 6.0% Universal credit (UC) and other benefits The two-child limit for UC and child tax credit will be removed. The £2,500 surplus earnings threshold will be extended for one year from 6 April 2026. The standard allowance, the basic amount of UC all eligible households receive, will increase by over 6% in April 2026. The maximum amount that can be reimbursed for childcare costs for eligible UC claimants will increase by £736.06 for each additional child above the current maximum cap for two children. Other working age benefits will be uprated in line with the September CPI inflation rate of 3.8% from April 2026. State pension The basic and new state pension will be uprated by 4.8%, amounting to up to an additional £575 a year in 2026/27 depending on the pensioner’s entitlement. The pension credit standard minimum guarantee will also be uprated by 4.8% from April 2026. Administration of pension credit and housing benefit will be brought together.
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