PIXIE PAYROLL Blog

The latest update to National Minimum Wage (NMW) and National Living Wage (NLW) rates are officially on their way and while it’s great news for employees, it’s time for employers to sprinkle a little payroll magic to stay compliant.

From 1 April 2026, the new hourly rates will be:

• 21 and over (National Living Wage): £12.71 (up from £12.21)
• 18–20 year olds: £10.85 (up from £10.00)
• 16–17 year olds: £8.00 (up from £7.55)
• Apprentices: £8.00 (up from £7.55) 

The biggest percentage increase is for the 18–20 age group (a notable jump of around 8.5%), showing a continued move toward narrowing the gap between age bands.

Now for the important bit…

1. It’s not optional

These rates are a legal minimum, not a guideline. Underpaying staff – even accidentally – can lead to penalties, back-pay and some very unwanted attention from HMRC.

2. Timing matters

The new rates apply from the first pay reference period starting on or after 1 April 2026.

3. It’s not just hourly pay

Minimum wage compliance includes:

• Salaried workers
• Deductions (like uniforms or salary sacrifice)
• Unpaid working time

This is your friendly nudge to:

✔ Review employee ages (especially those moving into a new band)
✔ Check apprentice status and eligibility
✔ Audit any deductions that could impact minimum wage
✔ Update your payroll software before your April run

You might also hear about the Real Living Wage, which is higher:

• £13.45 across the UK – (£14.80 in London)

Unlike the government rates, this one’s voluntary — but many employers choose to adopt it to better reflect actual living costs.

Get in touch if you’d like help preparing for April — we’ve got you covered at Pixie Payroll.

The UK Government has announced significant reforms to the Local Government Pension Scheme (LGPS), aimed at tackling the long-standing gender pension gap. With changes coming into effect from April 2026, this update will directly impact millions of members – many of them women working in frontline public service roles.

For employers across Cornwall, this is an important development to understand and prepare for.

Why these changes matter

The LGPS covers nearly seven million members across England and Wales, around three-quarters of whom are women. Many work in essential roles such as school meal providers, cleaners, librarians and street teams.

Historically, one of the biggest contributors to the gender pension gap has been maternity and related leave. Periods of unpaid additional maternity leave have not counted towards pension accrual – meaning time taken to care for a child could reduce long-term retirement income.

From April 2026, that changes.

What’s changing?

Key reforms include:

✔ Unpaid additional maternity, shared parental and adoption leave will become automatically pensionable.
This ensures caring responsibilities no longer reduce future pension benefits.

✔ Gender pension gap reporting will be placed on a statutory footing.
This introduces greater transparency and accountability within the scheme.

✔ Survivor benefit inequalities will be removed.
Past inconsistencies affecting opposite-sex and same-sex partners will be corrected through backdated payments and future adjustments.

✔ Removal of the age 75 cap on lump-sum death grants.
Survivors will receive broader financial protection.

As Pensions Minister Torsten Bell stated, these reforms aim to ensure women are no longer penalised in retirement for taking time out to have children.

For LGPS employers in Cornwall, preparation will be key.

You may need to:

• Review how maternity and parental leave is processed
• Ensure payroll systems are ready for pensionable unpaid leave
• Communicate changes clearly to employees
• Monitor updates to reporting requirements

Accurate payroll administration will play a crucial role in ensuring employees receive the pension benefits they’re entitled to. At Pixie Payroll, we understand how important it is to stay ahead of legislative changes, especially those that affect financial security in retirement.

National Apprenticeship Week 2026: 9 – 15 February 2026

In February, the spotlight firmly shines on apprenticeships and the positive impact they make to individuals, businesses and the wider economy. This week long celebration brings together businesses and apprentices across the country.

National Apprenticeship Week is one of those moments in the year that quietly reminds us how powerful learning on the job can be – especially in a field like payroll, where precision, people skills and real world experience matter just as much as theory.

National Apprenticeship Week shines a light on the value of practical learning and payroll is a perfect example of a profession where apprenticeships truly make a difference. Payroll isn’t just about numbers; it’s about understanding people, legislation, deadlines and the core of every organisation – paying employees accurately and on time. That blend of technical skill and human impact makes it an ideal environment for apprentices to thrive.

Payroll apprenticeships offer something that textbooks alone can’t deliver: real‑world exposure. Apprentices get hands‑on experience with payroll systems, compliance rules and the day‑to‑day challenges that shape the role. They learn how to navigate legislation, support colleagues and build confidence in a fast‑moving environment.

The skills that can be learnt and refined include:

• Developing workplace confidence
• Building technical payroll expertise
• Gaining exposure to legislation and compliance
• Learning how payroll impacts the wider business

These experiences create payroll professionals who are not only technically capable but also adaptable, resilient and ready to grow.

Apprentices in payroll quickly discover that the role is far more dynamic than many expect. You’re solving problems, supporting employees, interpreting legislation and working with HR, finance and leadership teams. It’s a career that rewards curiosity and continuous learning.

For employers, apprenticeships are a powerful way to build a skilled, loyal workforce. Apprentices bring fresh perspectives, enthusiasm and a willingness to learn. In return, they gain a career foundation that can lead to roles such as Payroll Officer, Payroll Analyst, Payroll Manager or even specialist positions in systems and compliance.

If you’re considering a payroll apprenticeship or thinking about offering one, this week is the perfect reminder of how transformative they can be. There some great resources for Payroll careers to be found here: Payroll Career Resources for UK Professionals | CIPP or if you’d like some friendly advice about how I started Pixie Payroll and continue to love my profession, you can drop me an email at info@pixiepayroll.co.uk

For many employers, the next big workplace pension milestone is approaching fast: re-enrolment. Every three years, employers must re-enrol eligible staff back into their workplace pension scheme. It’s a legal duty and one The Pensions Regulator (TPR) takes seriously.

But here’s the problem:
Many employers are missing important re-enrolment notices simply because their contact details are out of date.

And unfortunately, “I didn’t see the letter” isn’t a defence.

What is re-enrolment and why does it matter?

Re-enrolment is part of the UK’s automatic enrolment rules. Every three years, employers must:

• Re-enrol eligible employees who have previously opted out or ceased membership
• Put them back into a qualifying workplace pension scheme
• Restart pension contributions
• Re-declare compliance to The Pensions Regulator (TPR)

TPR will contact you in advance to remind you of your duties but only if they can reach you.

The Pensions Regulator sends statutory notices, reminders and deadlines to the contact details it holds on record. If your business has:

• Changed address
• Changed payroll provider
• Changed accountant or adviser
• Changed email addresses
• Changed company officers or directors

And missing those communications can lead to:

• Missed re-enrolment dates
• Late re-declaration of compliance
• Compliance notices
• Financial penalties

All for something that’s easily preventable.

Whose responsibility is it? It is the employer’s legal duty to keep their details up to date with The Pensions Regulator.

Even if you outsource pension administration, the responsibility still sits with you as the employer.

Employers should ensure all of the following are accurate at all times:

• Primary contact details
• Secondary contacts
• Business address
• PAYE information

It’s a simple check that could save you time and money

The good news? This is one of the simplest compliance checks you can do.

Ask yourself:

• Have our business or contact details changed in the last three years?
• Is the email address registered with TPR still monitored?
• Would the right person see an official pension notice today?

If you’re not 100% confident, it’s time to log in and check.

In a world of increasing regulation, pension compliance isn’t something you want to leave to chance. Workplace pensions don’t have to be complicated, but they do require attention. Keeping your details updated with The Pensions Regulator is a small task that can prevent big problems. Take five minutes today to check your details.