The government's minimum wage increase officially comes into force this week, heaping more pressure on British businesses already dealing with soaring costs.
The national minimum wage is going up by 50p to £12.71 for over 21s, while for the 18-20s, there is an 85p rise to £10.85.
Under 18s and apprentices will receive a minimum of £8 per hour - a rise of 45p.
It comes after over-21s received a 6.7% rise, and 18-20s a 16.3% rise, last year when National Insurance contributions were also hiked.
Some, including The Living Wage Foundation, have welcomed the rises.
The Foundation has called for more to be done and said the "real living wage" stands at £13.45 across the UK and £14.80 in London.
But the cost increases for businesses are a growing concern, with 73% of respondents in the British Chambers of Commerce Q1 2026 Quarterly Economic Survey citing labour costs as their top financial pressure.