UK Budget Raises Minimum Wage for 18‑20‑Year‑Olds to £11.27 an Hour

The 2026 UK Budget increases the minimum wage for workers aged 18‑20 by 3.9%, bringing their hourly rate to £11.27. The rise applies from next April and is the same percentage increase given to older workers, meaning the age‑based differential remains. The change follows Labour’s decision to reverse a previous plan to equalise the minimum wage across all adults. The increase also means a 21‑year‑old on the minimum wage who took out a student loan after 2023 will reach the £25,000 repayment threshold, triggering a 9% repayment rate. The Budget also introduces a new “First‑Time Buyer ISA” in 2029, offering up to £4,000 a year in government top‑ups with a 25% bonus, and outlines a £4.7 bn scheme to help 70,000 first‑time buyers purchase new‑build homes with a 2.5% deposit and a 20% loan. No new measures for 18‑24‑year‑olds who are NEET were announced; the government will wait for Alan Milburn’s recommendations before acting.