The UK Government has confirmed that new National Living Wage (NLW) and National Minimum Wage (NMW) rates will take effect from 1 April 2026, increasing hourly pay for millions of workers. The updated rates follow recommendations from the Low Pay Commission and will be enforced by HM Revenue and Customs (HMRC).
From April 2026, workers aged 21 and over will see their statutory minimum hourly rate rise to around £12.71 per hour, with increases also applying to younger workers and apprentices. The changes are confirmed policy and form part of the Government’s annual wage review cycle.
Here is what is changing, who benefits, and what it means for employers and employees across England, Scotland, Wales and Northern Ireland.
What Is the National Living Wage and National Minimum Wage?
The UK operates two main statutory wage frameworks:
- National Living Wage (NLW): Applies to workers aged 21 and over
- National Minimum Wage (NMW): Applies to workers aged 16–20 and apprentices
Rates are reviewed annually, usually taking effect at the start of the new tax year on 1 April.
The National Living Wage was introduced in 2016 to provide higher minimum hourly pay for older workers.
Confirmed UK Minimum Wage Rates for 2026
From 1 April 2026, the expected statutory hourly rates are:
- Age 21 and over (National Living Wage): ~£12.71 per hour
- Age 18–20: ~£10.85 per hour
- Age 16–17: ~£8.00 per hour
- Apprentice rate: ~£8.00 per hour
These figures represent increases across all bands, with proportionally larger percentage rises for younger workers.
Final statutory instruments will confirm the exact legal rates before implementation.
When Will the New Rates Be Paid?
The new wage levels apply from:
- 1 April 2026
Workers should see the increase reflected in the first full pay period after this date, depending on payroll schedules.
For example:
- Weekly-paid workers may see changes in early April
- Monthly-paid workers may see changes in April or May salary
Employers are legally required to comply from the effective date.
How Much More Could Workers Earn?
For full-time workers (35–40 hours per week), the increase could translate into:
- Approximately £900 to £1,500 extra per year, depending on age and hours worked
- Higher annual earnings for part-time and shift workers
The largest nominal gains apply to workers aged 21 and over due to the higher base rate.
Why the Minimum Wage Is Increasing
The 2026 rise reflects several economic factors:
Cost of Living Pressures
Inflation and higher housing, food and energy costs have affected low-income households disproportionately.
Government Policy Direction
Ministers have maintained a policy objective of raising the NLW toward a defined percentage of median earnings.
Low Pay Commission Advice
The independent Low Pay Commission reviews labour market data, inflation and employment trends before making recommendations.
What This Means for Workers
Higher Take-Home Pay
Minimum wage workers will see an automatic pay rise from April 2026.
Reduced Financial Pressure
Higher earnings may help households manage essential costs such as rent, groceries and transport.
Legal Protection
Minimum wage rates are enforceable by law. Workers can raise underpayment concerns confidentially with HMRC.
What This Means for Employers
While the increase benefits workers, employers may face:
- Higher wage bills
- Increased employer National Insurance contributions
- Adjustments to staffing budgets
Some business groups have raised concerns about operating costs, particularly in sectors with large numbers of minimum wage employees.
Which Sectors Benefit Most?
Industries with high minimum wage employment include:
- Retail
- Hospitality
- Social care
- Cleaning and facilities management
- Warehousing and logistics
Millions of employees in these sectors are expected to benefit directly.
Youth Wage Bands – Will They Change?
There have been ongoing discussions about reducing or removing youth wage bands and moving toward a single adult rate. However, no confirmed changes beyond the 2026 rate adjustments have been announced.
The current age-based structure remains in place.
How to Check You Are Paid Correctly
Workers should:
- Review hourly pay on their payslip
- Confirm the number of hours worked
- Compare their rate with the official 2026 statutory rate
- Raise concerns with their employer first
If underpayment continues, workers can contact HMRC, which has enforcement powers.
What Happens If Employers Underpay?
Employers who fail to pay the minimum wage may face:
- Financial penalties
- Public naming by the Government
- Back-pay orders to affected workers
HMRC conducts investigations and can require repayment of arrears.
Will Minimum Wage Rise Again After 2026?
Minimum wage rates are reviewed annually. Future increases will depend on:
- Inflation trends
- Labour market conditions
- Economic growth
- Business sustainability
It is widely expected that statutory pay will continue to rise, though levels are determined year by year.
FAQs
When does the 2026 minimum wage increase start?
The new rates apply from 1 April 2026.
What is the new National Living Wage rate?
Around £12.71 per hour for workers aged 21 and over.
Who sets the minimum wage?
The Government sets rates based on advice from the Low Pay Commission.
Do I need to apply for the pay rise?
No. Employers must automatically update pay from April 2026.
What if I’m underpaid?
You should raise the issue with your employer or contact HMRC.
Does this apply across the UK?
Yes. Minimum wage law applies across England, Scotland, Wales and Northern Ireland.
Will rates increase again after 2026?
Rates are reviewed annually, so further increases are likely depending on economic conditions.