UK Minimum Wage Increase 2026: Current Rates and What Has Changed

The UK minimum wage increased on 1 April 2026, raising the legal hourly pay floor for millions of workers across the country.

Workers aged 21 and over now receive a National Living Wage of £12.71 per hour, up from £12.21 in 2025. Younger workers received larger percentage increases, with the rate for 18 to 20-year-olds rising by 8.5%.

The changes are particularly important for businesses in sectors such as retail, hospitality, care, cleaning and logistics, where large numbers of workers are paid at or close to the legal minimum.

The 2026 increase was recommended by the Low Pay Commission and accepted by the Government, with factors including earnings growth, inflation, living costs, employment conditions and the ability of businesses to absorb higher labour costs influencing the decision.

What Are the Current UK Minimum Wage Rates From April 2026?

The following statutory minimum wage rates have applied since 1 April 2026.

The £12.71 National Living Wage applies to eligible workers aged 21 and above throughout England, Scotland, Wales and Northern Ireland.

The separate National Minimum Wage rates apply to younger workers and qualifying apprentices.

How Much Did the UK Minimum Wage Increase Compared With 2025?

Workers aged 21 and over received a 50p hourly increase, taking the National Living Wage from £12.21 to £12.71.

For someone working 37.5 hours every week throughout the year, that represents around £975 more in gross annual pay before tax and other deductions.

The largest percentage increase went to workers aged 18 to 20.

Their hourly minimum increased from £10.00 to £10.85, which is an 85p or 8.5% increase. A worker consistently completing 37.5 hours a week at that rate could earn around £1,657.50 more annually before deductions.

Workers aged 16 to 17 and eligible apprentices received a 45p hourly increase, equivalent to 6%.

The larger increases for younger workers form part of the Government’s longer-term ambition to narrow the difference between youth minimum wage rates and the adult National Living Wage.

What Were the Deciding Factors Behind the 2026 Wage Increase?

The minimum wage is not increased simply by applying a fixed percentage each year.

The Low Pay Commission considers economic evidence before recommending new rates to the Government.

Important factors behind the 2026 rates included:

• Median Earnings: The National Living Wage was intended to remain around two-thirds of median hourly earnings for eligible workers aged 21 and over.
• Cost Of Living: Inflation and expected changes in household living costs were considered when assessing how much wages should increase.
• Labour Market Conditions: Employment levels, vacancies, unemployment and demand for workers influence how quickly minimum wages can rise.
• Business Conditions: The Commission considers whether employers can absorb higher wage costs without creating excessive risks to jobs or investment.
• Competitiveness: Higher labour costs have different effects across sectors, particularly in industries with large numbers of low-paid workers.
• Youth Employment: Larger increases for younger workers have to be balanced against the possible effect on employers’ willingness to recruit inexperienced staff.
• Wider Economic Conditions: Productivity, wage growth and the broader economic outlook also influence the final recommendation.

For the £12.71 National Living Wage, the Low Pay Commission concluded that a 4.1% increase balanced these considerations while meeting the Government’s earnings benchmark.

Is the 2026 Minimum Wage Increase Higher Than Inflation?

The National Living Wage increased by 4.1% in April 2026.

When the rate was recommended, the Low Pay Commission expected the increase to be higher than inflation over the period from April 2026 to March 2027.

That would mean the increase represents a real-terms pay rise, rather than workers simply receiving enough extra money to match rising prices.

Younger workers received even larger nominal increases.

The 18 to 20-year-old rate increased by 8.5%, while the under-18 and apprentice rates rose by 6%.

However, whether workers ultimately experience a meaningful improvement in purchasing power also depends on what happens to rents, food, transport, energy and other household costs.

It also depends on taxation and benefits.

The Low Pay Commission estimates that a single National Living Wage worker working 35 hours a week receives around a 3.3% increase in weekly take-home income, rather than the full 4.1% headline increase, because tax thresholds affect the amount retained after deductions.

How Much More Will Workers Earn From the 2026 Increase?

The amount a worker gains depends on their age, hours and whether they qualify for the apprentice rate.

For someone working 37.5 hours per week for 52 weeks:

These figures assume the employee works the same number of hours every week and receives the minimum hourly rate throughout the year.

Actual take-home pay will be lower where Income Tax, National Insurance, pension contributions or other deductions apply.

How Will the Wage Increase Affect Household Income and Living Costs?

Higher minimum wages increase gross earnings, but the effect on household finances varies considerably.

Someone receiving no means-tested benefits may retain only part of the wage increase after Income Tax and National Insurance.

A household receiving Universal Credit can experience a different outcome because higher earnings may reduce some Universal Credit entitlement while other benefit changes increase household income.

For 2026, the Low Pay Commission noted that the standard Universal Credit allowance was also increasing by more than the National Living Wage rate.

As a result, some low-paid households receiving Universal Credit may experience a stronger improvement in disposable income than workers relying solely on wages.

The extra earnings can help households meet expenses such as:

• Food And Groceries
• Rent And Housing Costs
• Energy Bills
• Transport Costs
• Childcare
• Debt Repayments
• Household Essentials
• Emergency Savings

However, the financial impact will differ considerably according to working hours, household size, housing costs and benefit entitlement.

How Will the Minimum Wage Increase Help Low-Paid Workers?

The most direct benefit is higher hourly earnings.

For someone already working full-time, even a relatively small increase in hourly pay can produce hundreds of pounds in additional annual gross income.

Higher statutory wages can also reduce the risk that workers’ earnings fall too far behind general wage growth.

Potential benefits include:

• Higher Gross Earnings
• Greater Household Spending Power
• Improved Ability To Meet Essential Costs
• Higher Workplace Pension Contributions Where Applicable
• Reduced Dependence On Some Income Support
• Better Incentives To Enter Or Remain In Employment
• Reduced Pay Gaps Between Younger And Older Workers

The benefits are particularly significant for 18 to 20-year-olds because their statutory rate increased substantially faster than the adult National Living Wage in 2026.

How Much Will the 2026 Minimum Wage Increase Cost Employers and the Government?

Higher minimum wages create a direct labour cost for businesses employing staff below the new statutory rates.

The official impact assessment estimated an Equivalent Annual Net Direct Cost to Business of around £157.6 million in 2025 prices.

However, that measure does not represent the entire effect on employers.

When higher pay for directly affected employees and indirect increases for workers whose employers maintain wage differences above the minimum are considered, the assessment estimated approximately £1.22 billion in increased employer labour costs.

The same assessment estimated around £1 billion in overall household wage benefits, including direct and indirect increases.

There is not one simple official figure that can accurately be described as the total “cost to the Government”.

The fiscal effect works in several directions.

Higher wages can produce:

• More Income Tax Revenue
• More Employee National Insurance Revenue
• More Employer National Insurance Revenue
• Higher Workplace Pension Contributions
• Changes In Universal Credit And Other Means-Tested Support
• Higher Wage Costs For Some Public Sector And Publicly Funded Services

The impact assessment estimated around £220 million in broader non-wage effects, including benefits to workers and the Exchequer, but this should not be interpreted as a single net Government gain or cost.

Which Workers and Industries Will Be Most Affected by the Increase?

The greatest effects are normally felt in sectors where a high proportion of employees are paid at or close to minimum wage.

These include:

• Retail
• Hospitality
• Restaurants And Pubs
• Hotels
• Cleaning
• Social Care
• Warehousing
• Logistics
• Leisure
• Food Services
• Some Manufacturing Roles
• Personal Services

Younger workers are particularly affected because their statutory wage rates rose faster than the adult National Living Wage.

Businesses with large numbers of younger employees may therefore experience a larger proportional change in wage costs.

Who Is Entitled to the UK Minimum Wage in 2026?

Most people legally classified as workers are entitled to at least the minimum wage rate appropriate to their age and circumstances.

This can include:

• Full-Time Employees
• Part-Time Employees
• Casual Workers
• Agency Workers
• Workers On Short-Term Contracts
• Zero-Hours Workers
• Home Workers
• Eligible Apprentices

The actual working relationship matters more than the title used by the employer.

For example, simply describing someone as self-employed or a volunteer does not necessarily determine their employment status if their actual working arrangement meets the legal definition of a worker.

Genuinely self-employed people working for their own clients or customers are generally not entitled to the National Minimum Wage. Genuine volunteers are also normally outside minimum wage protection.

What Minimum Wage Do Apprentices Get in 2026?

The apprentice minimum wage increased to £8.00 per hour on 1 April 2026.

However, the apprentice rate does not apply to every apprentice.

The £8 rate applies where the apprentice is:

• Under 19
• Aged 19 Or Over And In The First Year Of Their Apprenticeship

An apprentice aged 19 or over who has completed the first year of their apprenticeship must receive the minimum wage applicable to their age.

For example, a 21-year-old apprentice who has completed the first apprenticeship year would normally qualify for the £12.71 National Living Wage rather than the £8 apprentice rate.

What Is the Difference Between the National Minimum Wage and National Living Wage?

Both are legal minimum pay rates set by the Government.

The main difference is age.

The National Living Wage applies to eligible workers aged 21 and over.

The National Minimum Wage is the wider system that includes separate rates for younger workers and apprentices.

For 2026:

• National Living Wage for Age 21 and Over: £12.71
• National Minimum Wage for Age 18 to 20: £10.85
• National Minimum Wage for Under 18s: £8.00
• Apprentice Rate: £8.00

Employers cannot choose to pay less than the appropriate statutory rate simply because a worker agrees to it.

How Does the 2026 Minimum Wage Compare With the London Living Wage?

The statutory National Living Wage and the London Living Wage are different.

The Government’s legal National Living Wage is £12.71 per hour for eligible workers aged 21 and over.

The voluntary real Living Wage for the 2025 to 2026 cycle is £13.45 across the UK and £14.80 in London.

The London Living Wage therefore stands £2.09 an hour above the statutory National Living Wage.

For someone working 37.5 hours a week, that difference is approximately £4,075.50 annually.

The London Living Wage is voluntary rather than a separate legal minimum wage for London.

Therefore, a business in London that is not committed to the voluntary real Living Wage still has to meet the statutory national rate, but it is not automatically required to pay £14.80.

New real Living Wage rates for the 2026 to 2027 cycle are scheduled to be announced on 15 October 2026.

What Working Hours Count Towards Minimum Wage?

Employers must consider more than the obvious hours spent carrying out normal duties.

Depending on the type of work, minimum wage calculations can include:

• Time Spent Working At The Workplace
• Required Training
• Business Travel During Work
• Travel Between Clients Or Assignments
• Certain Waiting Time At The Workplace
• Certain On-Call Or Standby Periods At Or Near The Workplace

For example, if a care worker travels from one client to another during the working day, that travel can count as working time for minimum wage purposes.

Required training can also count.

Normal travel from home to a regular workplace generally does not count for minimum wage purposes.

Workers who are at home waiting to be called into work are also generally treated differently from workers required to remain at or near their workplace.

Can Deductions Take Pay Below the Minimum Wage?

Yes. An employee’s headline hourly rate may appear to meet the National Minimum Wage while employment-related deductions cause their minimum-wage pay to fall below the legal requirement.

Potential problem areas include compulsory costs connected with employment.

Examples include:

• Required Uniforms
• Required Work Clothing
• Protective Clothing
• Required Tools
• Certain Employment Expenses
• Accommodation Charges Above Permitted Levels

If an employer requires an employee to buy specific work clothing, the cost can reduce the pay counted for National Minimum Wage purposes.

This means an employer paying someone exactly £12.71 an hour cannot automatically assume they are compliant if the employee also has compulsory unreimbursed work expenses.

Employer-provided accommodation has separate rules.

From April 2026, the accommodation offset is £11.10 per day or £77.70 per week.

How Will the 2026 Minimum Wage Increase Affect Universal Credit and Benefits?

A wage increase does not automatically mean someone receiving Universal Credit will lose their entire increase in earnings.

Universal Credit adjusts according to income and household circumstances.

As wages increase, some claimants may receive less Universal Credit. However, they will generally retain part of the additional earnings.

The Low Pay Commission’s 2026 analysis shows that the interaction can vary significantly according to hours worked and household type.

It estimated that a single full-time worker earning the National Living Wage and working 35 hours a week would see weekly take-home income increase by about £11.90, equivalent to approximately 3.3%.

Households receiving Universal Credit can experience different results, particularly because the Universal Credit standard allowance also increased in 2026.

How Will the Wage Increase Affect London Employers and Businesses?

London businesses face the same statutory National Minimum Wage as employers elsewhere in the UK.

However, operating costs in the capital can make the impact different.

Hospitality, retail, leisure, cleaning and care businesses can be particularly exposed because wages represent a substantial part of their operating costs.

Employers may respond by:

• Reviewing Staffing Levels
• Changing Shift Patterns
• Increasing Productivity
• Investing In Technology
• Reducing Overtime
• Reviewing Recruitment Plans
• Increasing Some Prices
• Reducing Other Operating Costs

However, higher wages can also support employee retention and make vacancies more attractive.

That can potentially reduce recruitment, training and staff turnover costs.

London employers must also consider competition from businesses voluntarily paying the London Living Wage, currently £14.80, which can influence what workers expect even when the statutory minimum is lower.

Will the 2026 Minimum Wage Increase Push Up Prices or Inflation?

Higher wages can increase costs for businesses, particularly in labour-intensive industries.

Some employers may recover part of those costs through higher prices.

However, the Low Pay Commission’s assessment is that National Living Wage increases have had a relatively limited overall impact on UK inflation.

Evidence considered by the Commission suggested that employers were increasingly using price increases to manage higher wage costs, but other pressures such as National Insurance and energy costs could have a larger effect on business expenses.

The effect is also uneven.

A restaurant with a large minimum-wage workforce may experience a much greater wage-cost increase than a technology company where most employees already earn well above the legal minimum.

What Should Employers Do to Stay Compliant With the 2026 Rates?

The 2026 rates have been mandatory since 1 April.

Employers should ensure payroll and employment practices reflect the correct rates.

Important checks include:

• Confirm Every Employee’s Age
• Check Apprentice Status And Apprenticeship Year
• Update Payroll Systems
• Review Salaried Employees’ Effective Hourly Pay
• Include Eligible Training And Travel Time
• Check Uniform And Equipment Deductions
• Review Accommodation Charges
• Maintain Accurate Working-Time Records
• Check Employees When They Move Into A Higher Age Band
• Correct Underpayments Quickly

Minimum wage compliance is based on the worker’s effective pay during the relevant pay reference period rather than simply the hourly figure printed in an employment contract.

Employers should therefore check both pay and qualifying working hours.

What Should Workers Do If They Are Paid Below Minimum Wage?

Workers who believe they are being underpaid should first determine the rate that applies to them.

They should then compare their qualifying pay against their working hours.

Important steps include:

• Check Your Age-Based Minimum Wage Rate
• Check Whether The Apprentice Rate Correctly Applies
• Review Your Payslip
• Record The Hours You Actually Work
• Include Required Training Where Applicable
• Check Business Travel And Waiting Time
• Review Uniform And Equipment Costs
• Raise Any Difference With Your Employer
• Keep Copies Of Relevant Pay And Working-Time Records

Minimum wage law can be enforced by HM Revenue & Customs. Workers can also potentially pursue claims through an employment tribunal or court where appropriate.

Employers found to have underpaid staff may be required to repay arrears and can face financial penalties.

What Could Happen to the UK Minimum Wage in 2027?

The 2027 National Living Wage has not yet been finalised as of 9 October 2026.

The Government has asked the Low Pay Commission to provide recommendations by the end of October 2026 for rates taking effect on 1 April 2027.

The Government has said that two-thirds of median hourly earnings should remain a key reference point.

The Low Pay Commission’s earlier indicative estimate suggested that maintaining that relationship could require a National Living Wage between:

£13.02 and £13.34 per hour

Its central estimate was:

£13.18 per hour

That would represent an increase of around 3.7% from the current £12.71 rate.

However, these figures are projections rather than confirmed rates. The final recommendation can change as wage forecasts, inflation, employment conditions and economic data develop.

The Government has also maintained its longer-term objective of reducing the difference between the 18 to 20-year-old minimum wage and the adult National Living Wage.

The pace of that change will depend partly on evidence about youth employment and employers’ willingness to recruit younger workers.

Frequently Asked Questions

When Did the UK Minimum Wage Increase in 2026?

The new National Minimum Wage and National Living Wage rates took effect on 1 April 2026.

What Is the National Living Wage in 2026?

The National Living Wage is £12.71 per hour for eligible workers aged 21 and over.

What Is the Minimum Wage for 18 to 20-Year-Olds in 2026?

Workers aged 18 to 20 are entitled to at least £10.85 per hour, subject to the normal eligibility rules.

What Is the Minimum Wage for Under-18s in 2026?

Eligible workers aged under 18 but above compulsory school-leaving age receive at least £8.00 per hour.

What Is the Apprentice Minimum Wage in 2026?

The apprentice rate is £8.00 per hour for apprentices under 19 and those aged 19 or over who are in the first year of their apprenticeship.

Is the London Minimum Wage Higher Than the Rest of the UK?

No separate statutory London minimum wage exists. The legal National Living Wage remains £12.71 for workers aged 21 and over across the UK. The voluntary London Living Wage is currently £14.80.

Was the 2026 Minimum Wage Increase Higher Than Inflation?

The Low Pay Commission expected the 4.1% National Living Wage increase to exceed inflation over the minimum-wage year to March 2027, providing a real-terms pay increase.

The final real-terms effect depends on actual inflation during that period.

How Much More Will a Full-Time Minimum Wage Worker Earn?

A worker aged 21 or over completing 37.5 hours a week throughout the year earns approximately £975 more in gross annual pay because the hourly rate increased by 50p.

Can an Employer Pay Less Than Minimum Wage During Training?

Required training can count as working time for minimum wage purposes.

An employer cannot simply exclude compulsory training hours when doing so would cause the worker’s effective hourly pay to fall below the legal minimum.

Will the Minimum Wage Increase Again in 2027?

New rates are expected to apply from 1 April 2027.

The final rates had not been confirmed as of 9 October 2026, although the Low Pay Commission previously indicated a possible National Living Wage range of £13.02 to £13.34.