What the national living wage rise means for employees - and how HR can support their financial wellbeing

The government’s confirmation of a National Living Wage rise from April 2026 is welcome news for many employees.

With the new rate for workers aged 21+ increasing to £12.71 per hour, millions of people will see their income grow at a time when living costs remain challenging.

While this uplift will provide meaningful relief for many households, it also creates an important moment for HR teams. 

When pay changes, employees naturally think differently about their finances - and that’s where financial wellbeing support can have a real impact.

For many workers, the additional income will help ease day-to-day pressure.

It may give people more headroom in their budgets, allow them to start or increase savings, or simply reduce the stress caused by rising expenses.

But a change in pay can also raise new questions:

• “Can I finally start saving?”
• “How do I manage this better than before?”
• “What should I prioritise?”

This is where financial education and practical guidance become valuable. 

The wage rise creates a natural opportunity for employees to re-evaluate their money habits, and for HR teams to provide the tools that help them make confident, informed decisions.

Although the uplift won’t solve every financial challenge employees face, it does provide a fresh starting point. 

Many people will be thinking about how to make their new income go further, and this is the perfect time to re-introduce or reinforce financial wellbeing support.

Whether it’s budgeting guidance, goal setting, or understanding how small changes can build long-term resilience, the right resources can help employees turn increased income into improved financial outcomes.

Even positive change can create uncertainty.

Some employees may wonder what the wage rise means for hours, shifts, workloads or future planning. 

Offering clear communication, paired with accessible financial guidance, can help employees feel supported and in control.

When employees feel confident in managing their money, it positively influences engagement, resilience and overall wellbeing - all of which benefit the wider organisation.

The 2026 wage rise is more than a compliance update.

Instead, it’s a meaningful moment to empower your workforce. 

By pairing increased pay with practical financial wellbeing tools, HR teams can help employees make the most of the uplift and build healthier long-term financial habits.