National Living Wage update: 15th June 2026

The National living wage is £12.71 from 1st April 2026.

With most schemes we use a 'projected NLW rate' this is to mitigate the risks of employees falling below the NLW in any given year. We will continue to use projections for predicting future rate increases, we understand that this is just a forecast but we have a legal obligation to ensure that no staff falls below the proposed new minimum rates on its implementation.

Net Deduction cars are no longer available through Fleet Solutions, this is due to recent communications (HMRC Webinar) provided by our payroll provider that HMRC may require the Employer to use the National living wage rates against a NET car application.

From the 1st April, the Trust will use the following 'projected' rates of £13.21 for 12 month applications and £13.71 for 18/24 month applications. This is applicable for Home Electronics, Liaison Tech, Hays Holiday, Swyft Furniture and Bike applications.

From the 1st April, the Trust will use the following 'projected' rates for Fleet Solutions/GMP (Car) - £13.71 for 24 month and £14.21 for 36 month applications. This is because cars have an order lead-time (Delivery date)

Please see below for some examples and a full list of rates for each scheme.

Salary Sacrifice Scheme NLW rates effective from 1st April, please see list below:

Home Electronics - 12 month applications - £13.21 per hour/24 month applications - £13.71 per hour.

Full time NLW Threshold £25,830 (12 Month applications) and £26,808 (24 Month applications); An employee cannot FALL below these amounts when applying through Home Electronics. *Please note the Threshold is calculated pro -rata. Ask the Salary Sacrifice team for further advice. 

Fleet Solutions/GMP - 24 month applications - £13.71 per hour/36 month applications - £14.21 per hour.

For cars - Full time NLW Threshold £26,808 (24 Month applications) and £27,786 (36 Month applications); An employee cannot FALL below these amounts when applying through Fleet Solutions/GMP. *Please note the Threshold is calculated pro-rata. Ask the Salary Sacrifice team for further advice.

If an employee has a NET car, please be aware the Trust will use the monthly/yearly 'Net' deduction against any future Salary Sacrifice applications and this could affect future applications.

Cycle to work - 12 month applications - £13.21 per hour /18 month applications - £13.71 per hour.

Mersey travel pass - 12 month applications - £12.71 (*Current rate) per hour - Full time NLW Threshold £24,853

Additional annual leave for 2026/27 - Applications in the current fiscal year April 2026 to November 2026 - We will use a NLW rate of - £12.71 - Full time NLW Threshold £24,853

As part of the Salary Sacrifice schemes’ terms and conditions of operation, set by HMRC, the Trust uses the NLW level as a starting point when setting the ‘Minimum Entry Level’ for new Salary Sacrifice applications.

Our ‘Minimum Entry Level’ has been set slightly higher than the NLW in anticipation of any future increase in NLW during the term of the item, ensuring the Trust is compliant with the HMRC regulations. It also avoids any ‘knock on’ effect to participating staff’s tax coding or their ability to continue with the item as a Salary Sacrifice.

We will carry out a National Living Wage audit in preparation for the next rate rise (£12.71) due 1st April 2026. We will look to email any employee that has any salary sacrifice deductions and has been identified that they fall below the new rate.

In the email, we will explain this in more detail with actions that we are required to make, including potential 'pausing' deductions. This will be reviewed and any 'paused' deductions will be re-instated and completed as per contractual obligations once the NHS receive any pay awards for 2026 or a change in an Employee's Employment circumstances.

Please look for any relevant updates on the Staff Hub/FAQs or through the Liverpool News 'communication' emails.

If you have any queries/questions relating to the above information, please contact the Salary Sacrifice Team by email: smartsalary@liverpoolFT.nhs.uk or contact HMRC direct for tax queries.