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UK Minimum Wage 2026: New Rates, Changes And 2027 Outlook

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UK Minimum Wage 2026

From 1 April 2026, the National Living Wage for workers aged 21 and over increased to £12.71 per hour. The minimum wage for workers aged 18 to 20 rose to £10.85, while the rate for workers under 18 and eligible apprentices increased to £8.00 per hour.

The biggest percentage increase went to 18 to 20-year-olds, whose minimum rate rose by 8.5%.

The separate adult age bands have not yet been abolished, although the government remains committed to eventually aligning the 18 to 20 rate with the National Living Wage. The 2027 rates have not yet been confirmed.

Minimum Wage 2025 Vs 2026 Comparison

The April 2026 changes increased every main National Minimum Wage rate compared with the rates that applied from April 2025.

Worker Category 2025 Rate 2026 Rate Hourly Increase Percentage Increase
Age 21 And Over £12.21 £12.71 £0.50 4.1%
Age 18 To 20 £10.00 £10.85 £0.85 8.5%
Age 16 To 17 £7.55 £8.00 £0.45 6.0%
Apprentice Rate £7.55 £8.00 £0.45 6.0%
Accommodation Offset £10.66 £11.10 £0.44 4.1%

The most significant percentage increase was given to workers aged 18 to 20. Their hourly minimum increased by 85p, compared with a 50p increase for workers aged 21 and over.

The changes continue a broader policy of narrowing the gap between the adult National Living Wage and the minimum wage paid to younger adult workers.

What Is The Minimum Wage From April 2026 In The UK?

The National Minimum Wage is the lowest hourly rate most workers can legally be paid. The applicable rate depends mainly on the worker’s age and whether they qualify for the apprentice rate.

From 1 April 2026, workers aged 21 and over are entitled to a National Living Wage of £12.71 per hour.

Workers aged 18 to 20 must receive at least £10.85 per hour, while eligible workers aged under 18 receive £8.00 per hour.

The apprentice rate is also £8.00 per hour. It generally applies to apprentices aged under 19 and apprentices aged 19 or over who are still in the first year of their apprenticeship.

Workers and employers can check the official National Minimum Wage rates to confirm which statutory rate applies.

How Much Can Full-Time And Part-Time Workers Earn In 2026?

Full-Time And Part-Time Workers Earn In 2026An increase in the hourly minimum wage can make a noticeable difference to annual gross earnings, particularly for people working regular full-time hours.

The following estimates assume that the worker receives the same number of paid hours every week for 52 weeks.

Worker Category Hourly Rate 37.5 Hours Per Week 20 Hours Per Week
Age 21 And Over £12.71 £24,784.50 £13,218.40
Age 18 To 20 £10.85 £21,157.50 £11,284.00
Under 18 £8.00 £15,600.00 £8,320.00
Eligible Apprentice £8.00 £15,600.00 £8,320.00

These figures represent gross earnings before Income Tax, National Insurance, pension contributions and other deductions.

For someone aged 21 or over working 37.5 hours each week, the increase from £12.21 to £12.71 represents around £975 more in gross annual pay if their hours remain unchanged.

An 18 to 20-year-old working the same hours could earn approximately £1,657.50 more annually because their statutory rate increased by 85p per hour.

Actual annual earnings will vary depending on working hours, unpaid leave, overtime, bonuses and other employment arrangements.

Who Benefits From The Minimum Wage Increase In 2026?

Workers who were previously being paid at or close to the statutory minimum are most directly affected by the April 2026 increases.

Employees aged 21 and over receiving the National Living Wage have moved from £12.21 to £12.71 per hour.

Younger employees have received larger percentage increases. The 18 to 20 rate has risen by 8.5%, while the under-18 and apprentice rates have increased by 6%.

The increases are particularly relevant in industries where large numbers of employees are paid hourly or close to minimum wage levels. These can include retail, hospitality, social care, cleaning, leisure, customer service and seasonal work.

Employees already earning more than the statutory minimum are not legally guaranteed an equivalent percentage pay rise.

However, some employers may choose to adjust wider salary bands to maintain differences between entry-level and more senior roles.

What Has The UK Government Said About The 2026 Wage Increase?

The 2026 rates followed recommendations made by the independent Low Pay Commission, which advises the government on the National Minimum Wage and National Living Wage.

The government accepted the Commission’s recommendations in full.

For workers aged 21 and over, the £12.71 rate represents a 4.1% increase. The Low Pay Commission said its recommendation was intended to balance improvements in pay for lower-paid workers with economic conditions, labour-market conditions and the effect of higher wage costs on businesses.

The Commission also estimated that the £12.71 rate would maintain the National Living Wage around the government’s reference point of two-thirds of median hourly earnings for eligible workers.

How Are Businesses Affected By The 2026 Minimum Wage Increase?

Higher statutory wages increase direct employment costs for businesses that employ staff on or close to minimum wage levels.

The effect can extend beyond employees receiving the legal minimum. Businesses may also face pressure to increase wages for supervisors, experienced workers and employees whose existing rates are only slightly above the new minimum.

Industries with large hourly workforces can therefore face greater payroll pressure than businesses where most employees already earn substantially above minimum wage.

Employers should:

  • Update Payroll Systems With The Correct 2026 Rates
  • Check Employees Who Have Recently Turned 18 Or 21
  • Review Apprentice Ages And Apprenticeship Start Dates
  • Check Pay After Work-Related Deductions
  • Review Employment Budgets And Staffing Costs
  • Make Sure Required Working Time Is Included When Calculating Pay
  • Keep Accurate Pay And Working-Hours Records

Employers also need to be careful about deductions and expenses. Certain work-related costs can cause minimum-wage problems if they effectively reduce qualifying pay below the legal minimum.

Guidance on checking minimum wage pay and deductions explains how bonuses, tips, uniforms, training expenses and other payments can affect minimum-wage calculations.

What Could Happen To The Minimum Wage In 2027?

The National Minimum Wage rates that will apply from April 2027 have not yet been confirmed.

The Low Pay Commission has been asked to make recommendations to the government for the next annual increase.

For the National Living Wage, its current modelling indicates that maintaining the rate at around two-thirds of median hourly earnings could require a rate between £13.02 and £13.34 per hour from April 2027.

The central estimate is approximately £13.18 per hour, equivalent to a projected increase of around 3.7% from £12.71.

2027 National Living Wage Outlook Indicative Figure
Lower Estimate £13.02
Central Estimate £13.18
Upper Estimate £13.34
Current 2026 Rate £12.71

These figures are projections rather than confirmed rates. Changes in earnings, inflation, living costs, employment conditions and the wider economy could influence the final recommendation.

The government’s remit also retains its commitment to eventually align the 18 to 20 minimum wage with the National Living Wage.

However, the Low Pay Commission has flexibility over how quickly that change should happen because it must also consider the employment prospects of younger workers.

Is A Single Adult Minimum Wage Still Planned?

The government has not introduced a single minimum wage for all adults in 2026.

Workers aged 18 to 20 continue to have a separate £10.85 rate, compared with £12.71 for workers aged 21 and over.

However, the gap has narrowed. The 18 to 20 rate is now around 85% of the adult National Living Wage.

The government has restated its intention to remove separate adult age bands eventually, but no confirmed date has been announced for completing that process.

This means employers should continue using the existing age-based rates until new legislation and statutory rates are formally introduced.

What Do Trade Unions And Workers’ Groups Say About The Increase?

Trade Unions And Workers’ GroupsTrade unions have generally supported moves to raise minimum pay, while continuing to argue that younger adults should not receive a lower statutory wage simply because of their age.

The Trades Union Congress has specifically called for the 18 to 20 minimum wage band to be abolished.

TUC analysis published in March 2026 said around 85% of employees aged 18 to 20 were already earning more than their age-specific minimum rate. It also estimated that around 63% were earning at least the adult minimum wage.

The organisation argues that this reduces the need for a separate youth rate and that workers aged 18 to 20 face many of the same living costs as older employees.

The government and Low Pay Commission are taking a more gradual approach, with the Commission required to consider whether faster increases could affect employment opportunities for younger people.

What Is The Difference Between The Minimum Wage And The Real Living Wage?

The National Minimum Wage and real Living Wage are different systems.

The National Minimum Wage and National Living Wage are statutory. Employers must pay eligible workers at least the appropriate government-set rate.

The real Living Wage is voluntary and is independently calculated using the cost of living.

Criteria National Living Wage Real Living Wage London Living Wage
Current Rate £12.71 £13.45 £14.80
Legally Required Yes No No
Main Coverage Age 21 And Over Age 18 And Over At Accredited Employers Age 18 And Over At Accredited London Employers
Basis Government Wage Policy Cost Of Living Higher London Cost Of Living
Set By UK Government Living Wage Foundation Living Wage Foundation

The current real Living Wage is £13.45 per hour across the UK and £14.80 in London.

These are the 2025/26 Living Wage Foundation rates and remain the latest rates as of August 2026. The organisation states that the next 2026/27 figures are due to be announced in October 2026.

More than 16,000 employers voluntarily pay the real Living Wage rates, which are calculated according to living costs rather than government minimum-wage policy.

What Is The History Of The UK Minimum Wage?

The UK’s statutory minimum wage was introduced in April 1999 and has changed considerably since then.

The National Living Wage was introduced in 2016 as a higher statutory minimum for older workers. Its age threshold was initially 25 before gradually being reduced.

In 2021, workers aged 23 and over became eligible for the National Living Wage. The threshold was then lowered again to 21 from April 2024.

The 2026 system continues to use three main age categories alongside a separate apprentice rate.

Year Important Change
1999 National Minimum Wage Introduced
2016 National Living Wage Introduced For Workers Aged 25 And Over
2021 National Living Wage Age Threshold Reduced To 23
2024 National Living Wage Age Threshold Reduced To 21
2025 Adult Rate Increased To £12.21
2026 Adult Rate Increased To £12.71 And Youth Rate Gap Narrowed
2027 New Rates Still To Be Confirmed

The direction of policy suggests further movement towards reducing age-related differences, particularly between workers aged 18 to 20 and those aged 21 and over. However, future changes will depend on government decisions and Low Pay Commission recommendations.

Conclusion

The UK minimum wage increased across every main worker category from 1 April 2026. Workers aged 21 and over are now entitled to £12.71 per hour, while the rate for 18 to 20-year-olds has risen to £10.85. Under-18 workers and eligible apprentices receive at least £8.00 per hour.

Compared with 2025, younger workers have received the largest percentage increases as the government continues to narrow the gap between age-based minimum wage rates.

Attention is now turning towards April 2027. Although early Low Pay Commission modelling puts the National Living Wage in a possible range of £13.02 to £13.34, no 2027 rate has yet been confirmed.

Until a new rate is formally announced, employers should continue using the April 2026 statutory rates and ensure their payroll, deductions and employee age records remain compliant.

FAQs

What Is The UK Minimum Wage In 2026?

The National Living Wage is £12.71 per hour for workers aged 21 and over from 1 April 2026.

What Is The Minimum Wage For 18 To 20-Year-Olds In 2026?

Workers aged 18 to 20 are entitled to a minimum of £10.85 per hour from 1 April 2026.

What Is The Minimum Wage For Under-18s In 2026?

Eligible workers above school-leaving age but under 18 must 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.

How Much Did The National Living Wage Increase In 2026?

It increased from £12.21 to £12.71 per hour, a rise of 50p or approximately 4.1%.

What Will The UK Minimum Wage Be In 2027?

The 2027 rate has not been confirmed. Current Low Pay Commission modelling indicates a possible National Living Wage range of £13.02 to £13.34, with £13.18 as the central estimate.

What Is The Real Living Wage In 2026?

The latest voluntary real Living Wage is £13.45 across the UK and £14.80 in London. New 2026/27 rates are expected to be announced in October 2026.