Minimum wage rates in the UK increased on 1 April, affecting 2.7 million workers. The National Living Wage for those aged 21 and over rose to £12.71 an hour, up 50p from 2025. For full-time workers on 37.5 hours per week, this equates to £24,784.50 annually, an increase of £900. The rate for 18 to 20-year-olds climbed to £10.85 an hour, worth an extra £1,500 yearly for full-time workers, while 16 and 17-year-olds now receive £8 an hour.
The government has stated its intention to eventually abolish the separate rate for 18 to 20-year-olds and establish a single rate for all adults. Apprentices aged 16 to 18, and those aged 19 or in their first year, receive £8 an hour. Those over 19 who have completed their first year are entitled to the appropriate National Minimum Wage or National Living Wage rate for their age.
Certain workers do not qualify for minimum wage protections, including the self-employed, company directors, volunteers, armed forces members and prisoners. Employers must pay the correct rates or face criminal penalties. In March 2026, the government reported that 389 employers had been fined approximately £12.6 million for failing to pay staff correctly, and were required to repay around £7.3 million to approximately 60,000 underpaid workers. Employers penalised included Busy Bees, Norwich City Football Club, Hays Travel and Costa Coffee.
The Real Living Wage, an unofficial voluntary standard overseen by the Living Wage Foundation charity, differs from the legal minimum. In October 2026, the foundation announced the UK rate would increase by 4.8% to £14.10 an hour. The London Living Wage would rise by 4.4% to £15.45. The foundation states the voluntary rate is worth over £2,700 more annually than the legal minimum wage nationally, and over £5,300 more in London. Nearly 17,000 firms voluntarily pay this rate to almost 500,000 employees.