Minimum Wage Rates Increase for Workers in the UK

The official minimum rates of pay increased for 2.7 million workers on 1 April 2026. The rate for workers aged 21 and over is referred to as the National Living Wage, while those aged 18 to 20 receive the National Minimum Wage. From 1 April 2026, the National Living Wage for workers over 21 will be £12.71 an hour, which is 50p more than in 2025. For a full-time worker working 37.5 hours a week, this equates to an annual salary of £24,784.50, an increase of £900. The rate for 18 to 20-year-olds has risen to £10.85 an hour, resulting in an increase of £1,500 a year for a full-time worker. The government aims to eliminate the separate rate for 18 to 20-year-olds, establishing a single rate for all adults. Additionally, the minimum wage for 16 and 17-year-olds has increased to £8 an hour. There are varying pay rates for apprentices based on their age and apprenticeship stage. Apprentices aged 16 to 18 are entitled to the National Minimum Wage rate for their age group, which is currently £8, while those aged 19 or in their first year of apprenticeship receive the same amount. Those over 19 or who have completed their first year are entitled to the appropriate National Minimum Wage or National Living Wage rate for their age. Certain workers, such as the self-employed, company directors, volunteers, members of the armed forces, and prisoners, do not qualify for the National Minimum Wage or National Living Wage. Individuals with disabilities or long-term unemployment participating in government work programs receive fixed amounts that are lower than the equivalent National Minimum or Living Wage rates. Employers are legally required to pay the correct National Minimum and Living Wages to eligible employees, and failing to do so is a criminal offense. The rates apply regardless of whether workers are paid by the hour. In March 2026, the government reported that 389 employers were fined approximately £12.6 million for underpaying staff, with a requirement to repay £7.3 million to around 60,000 underpaid workers. Notable firms included in this report are Busy Bees, Norwich City Football Club, Hays Travel, and Costa Coffee. The Real Living Wage, which is not mandatory, is overseen by the Living Wage Foundation charity and is set to meet the cost of living. Approximately 500,000 employees working for nearly 17,000 firms receive this voluntary rate of pay. The foundation announced that in October 2026, the UK rate would increase by 4.8% to £14.10 an hour, while the London Living Wage would rise by 4.4% to £15.45. The Living Wage Foundation states that this rate is worth over £2,700 more per year than the legal minimum wage in the UK and over £5,300 more in London.