Minimum wages and the state of the economy: Lessons for the UK

Description

From 1 April 2026, the UK National Living Wage (NLW) for workers aged 21 and over increased by 4.1% to £12.71 per hour. Nikolaos Kokonas at the University of Bath explains how this could increase consumer spending, support jobs and help lower-income households, but the effect will depend on the state of the wider economy. In the current UK climate, where cost pressures are persistently high, the overall impact is likely to be modest.