By bizn_fun 
The minimum wage increases are on top of a 6.7% for over-21s and 16.3% for 18 to 20-year-olds respectively last year, when there was also a rise in employers’ National Insurance contributions.
The Treasury said the new rates for 2026 struck a balance between “the needs of workers, the affordability for businesses and the opportunities for employment”.
But higher wages pushes up running costs for firms, which can react by reducing hiring, giving lower pay rises to other workers or raising prices for customers.
There widespread evidence that employers taken some or all of such steps in the last year, following previous hikes and tax rises.
However, Reeves said the cost of living was still the biggest issue for working people.
“The economy isn’t working well enough for those on the lowest incomes,” she added.