Budget 2026: Employment headlines
The 2026 Budget contained several employment-related announcements for employers to watch.
Most notably, the Government confirmed that it will restrict the use of non-compete clauses across the whole economy, rather than limiting reform to particular sectors or employers. A consultation on the wider use of restrictive practices will follow shortly, with the Government’s detailed position expected in early 2027.
From 1 April 2027, the National Living Wage and National Minimum Wage rates for workers aged 21 and over and those aged 18-20 will rise by 3.9%, to £13.21 and £11.27 respectively. The Chancellor also signalled further action on pay transparency in job adverts, building on the Government’s earlier equal pay proposals.
Separately, parental pay will be extended to eligible self-employed fathers, partners and adopters from April 2029, with the wider Parental Leave and Pay Review due to conclude in early 2027.
If you’d like to discuss any of the announced changes, please get in touch with a member of our Employment and Partnerships team.
