Yes, most low-paid workers are getting more. From 1 April 2026, anyone aged 21 or over must be paid at least £12.71 an hour. That’s 50p more than last year, a 4.1% jump. Younger workers and apprentices did even better.
Noticed a bit more on your payslip? The reason is that the minimum wage increase for 2026 is based on advice the Low Pay Commission gave in October 2025. It’s a panel of nine people speaking for employers, workers and independent experts. They’ve agreed to their advice unanimously every year since 1998, and the government accepted it in full.
- Over-21s get at least £12.71 an hour
- 18- to 20-year-olds get £10.85, up 8.5%
- Under-18s and apprentices get £8.00, up 6%
- A full-timer on 35 hours takes home £11.90 more a week
Minimum Wage Increase in 2026: The New Rates
| Rate | April 2025 | April 2026 | Rise (£) | Rise (%) |
|---|---|---|---|---|
| National Living Wage (21+) | £12.21 | £12.71 | £0.50 | 4.1% |
| 18–20 Year Old Rate | £10.00 | £10.85 | £0.85 | 8.5% |
| 16–17 Year Old Rate | £7.55 | £8.00 | £0.45 | 6.0% |
| Apprentice Rate | £7.55 | £8.00 | £0.45 | 6.0% |
| Accommodation Offset (daily) | £10.66 | £11.10 | £0.44 | 4.1% |
Get Recruited notes that the accommodation offset works out at £77.70 a week. The £8.00 apprentice rate only applies if you’re under 19 or 19 and over and in your first year. Once that year’s done, you move to the rate for your age. So a 21-year-old apprentice goes from £8.00 to £12.71 an hour.
How Much More Will You Earn?
A 37.5-hour week on £12.71 pays £476.63 before tax, about £24,785 a year. Do 40 hours and it’s £508.40, roughly £26,437 a year. An 18- to 20-year-old on 40 hours gets £434.00 a week, around £22,568 a year.
Take-home pay is a separate issue. Figures on GOV.UK show a full-time worker on 35 hours gets £11.90 more a week, a 3.3% rise. Why not the full 4.1%? Tax thresholds are still frozen, so your average tax rate creeps up. The personal allowance stays at £12,570 for 2026/27.
Universal Credit claimants do better. The standard allowance is going up 6.2%, so their take-home rises by more than 4.1%. A single NLW worker stops qualifying for UC after 14 hours a week and pays tax and NI above 20. A couple with two school-age kids and one earner sees take-home income grow by at least 4.2%.
Also read: Pay Gap: Why are UK Salaries so Low Compared to Australia
Will the Rise Beat Inflation?
It should. Forecasters expect CPI inflation of 1.8% to 2.0% over the minimum wage year. So workers should be better off in real terms by March 2027. The NLW’s real value has shot up by more than 75% since 2009. The catch? These forecasts don’t account for the conflict in the Middle East.
Last year’s rise added just 0.1 to 0.5 points to the 8.1% growth in the total wage bill. It added only 0.1 to 0.2 points to inflation. The Bank of England reckons this year’s rise will have a “negligible” effect on wage growth.
Why Young Workers Gained the Most
This is the third year in a row that the 18 to 20 rate has risen faster than the NLW. It now sits at 85% of the adult rate, similar to the early days of the minimum wage.
Over 18% of jobs for this age group, almost 200,000, should now be paid at this rate.
That’s the highest ever. Coverage also rises for under-18s (22% to 23%) and apprentices (17% to 18%). Jobs paid the NLW are expected to dip from 1.76 million to 1.70 million, about 5.9% of all jobs.
Retail union Usdaw welcomed the rises, and Chancellor Rachel Reeves said:
“I know that the cost of living is still the number one issue for working people and that the economy isn’t working well enough for those on the lowest incomes. Too many people are still struggling to make ends meet, and that has to change. That’s why today I’m announcing that we will raise the National Living Wage and also the National Minimum Wage so that those on low incomes are properly rewarded for their hard work. These changes are going to benefit many young people across our country, getting their first job.”
What Employers Need to Check
Bosses, take note. Payroll firm Bpayroll warns that the real cost per worker climbs faster than the hourly rate. That’s because of employer National Insurance and pension contributions on top. Pay gaps between new starters and supervisors can shrink too.
Be aware of deductions, salary sacrifice, and unpaid time, such as training, that can bring pay below the legal minimum. The Fair Work Agency now handles enforcement, with HMRC acting for it. Mistakes can mean fines, back pay and public naming.
From 6 April, Statutory Sick Pay is £123.25 a week, or 80% of earnings if that’s lower. It’s now paid from the first day off sick. Family pay rose to £194.32 a week.
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Temporary and Agency Workers Are Covered Too
Agency, zero-hours, seasonal and many gig workers must get the minimum wage for every hour they work. Select Recruitment says agencies can’t use deductions to cut your pay below it, except for the accommodation offset. Paid by output? Your total pay divided by your hours must still hit the minimum. After 12 weeks in the same role with the same hirer, agency workers get equal pay and core conditions.
What to Do If Your Pay Looks Wrong
Check every payslip. Is the rate right for your age? Are all your hours there? If not, speak to your employer or agency, then use the formal grievance process. ACAS gives free, confidential advice, and Citizens Advice can help with tax and benefits. Keep records, as tribunal claims have strict time limits.
What Comes Next for 2027?
The commission’s new remit came out on 16 March 2026. Two-thirds of median hourly earnings is still “the key reference point for future rates“. On current forecasts, that means an NLW of £13.02 to £13.34 in 2027, with £13.18 as the central estimate. The commission makes its call in October.
FAQs
What is the UK minimum wage in 2026?
Ans: It’s £12.71 an hour for over-21s and £10.85 for 18- to 20-year-olds. Under-18s and apprentices get £8.00.
When did the minimum wage increase in 2026 start?
Ans: The new rates kicked in on 1 April 2026. They apply to pay periods starting on or after that date.
How much is £12.71 an hour a year?
Ans: It’s about £24,785 before tax on a 37.5-hour week. On 40 hours a week, it’s roughly £26,437.
Why did 18- to 20-year-olds get a bigger rise?
Ans: The government wants to shrink the gap with the adult rate. It also plans to lower the NLW age to 18 over time.
Do agency and zero-hours workers get the new rates?
Ans: Yes. They’re entitled to at least the minimum wage for every hour worked, whatever their contract.
What will the minimum wage be in 2027?
Ans: Nothing’s confirmed yet. Estimates suggest £13.02 to £13.34 an hour, with a decision due in October 2026.
Sources & References:
- GOV.UK – A full-time worker on 35 hours gets £11.90 more a week, a 3.3% rise.
- Bpayroll – The real cost per worker climbs faster than the hourly rate.
- USDAW – Retail union Usdaw welcomed the rises.
- Get Recruited – The accommodation offset works out at £77.70 a week.
