Chancellor Rachel Reeves has announced that the minimum wage will increase for approximately 2.7 million workers in April 2026, ahead of the upcoming Budget.
The National Living Wage is the term used for the rate applicable to workers aged 21 and over, while the National Minimum Wage is paid to those aged 18 to 20. These rates are implemented uniformly across the UK.
Since April 2025, the National Living Wage has been set at £12.21 per hour for workers aged 21 and above.
This rate is scheduled to rise to £12.71 per hour in April 2026.
For a full-time worker (37.5 hours per week), this equates to an annual income of £24,784.50, representing an increase of £900.
In April, the minimum wage for 18 to 20-year-olds increased to £10 per hour, a 16% rise from £8.60. A further increase of 8.5% is planned for next April, bringing the rate to £10.85.
This will result in an annual increase of £1,500 for a full-time worker.
The government has stated its long-term objective is to eliminate the separate rate for 18 to 20-year-olds, and establish a single minimum wage for all adults.
The current minimum wage for 16 and 17-year-olds is £7.55 per hour, which is set to increase by 6% to £8 per hour in April.
Different rates of pay apply to apprentices, contingent on age and the stage of their apprenticeship. Details can be found on the government website.
Apprentices aged 16 to 18 are entitled to the National Minimum Wage rate for their age group, currently £7.55.
This rate will increase to £8 in April.
Individuals aged 19 or in their first year of apprenticeship receive the same amount.
However, those over 19 – or who have already completed their first year – are entitled to the appropriate National Minimum Wage or National Living Wage rate for their age.
Certain categories of workers are not eligible for either the National Minimum Wage or the National Living Wage.
This includes the self-employed, company directors, volunteers, members of the armed forces, and prisoners.
Individuals with disabilities or those experiencing long-term unemployment who participate in government work programmes receive fixed payments at various stages of the scheme.
These payments are typically lower than the equivalent National Minimum Wage or Living Wage rates.
Yes, it is a criminal offence for employers to fail to pay eligible workers the correct National Minimum and Living Wages.
These rates apply to staff regardless of whether they are paid hourly.
If you suspect you are being underpaid, you can file a complaint via the HMRC website.
Advice is also available from workplace relations experts Acas.
Employers found to be in non-compliance may be subject to fines from HMRC.
In October 2025, the government published a list of nearly 500 employers who were fined over £10m for minimum wage violations.
It stated that 42,000 workers at companies, including British Gas’s parent company Centrica, Euro Garages and Holland & Barrett, were repaid over £6m.
The listed firms faced penalties of up to double the total amount owed to staff, with some underpayments dating back to 2013.
The Real Living Wage is an independently calculated hourly rate overseen by the Living Wage Foundation charity.
It is targeted at UK workers aged 18 and over, but is voluntary, and firms can choose whether or not to pay it. The rate is updated every October.
The charity reports that almost 500,000 employees across more than 16,000 firms receive this voluntary rate of pay.
As of October 2025, this means workers in London earn at least £14.80 per hour – the London Living Wage – an increase of 95p, or 5.3%.
In the rest of the UK, the rate increased by 85p to £13.45, representing a 6.7% rise.
The Living Wage Foundation states that this rate equates to £2,418 more per year than the statutory minimum wage in the UK, and £5,050 more in London.
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