Minimum wage rates across the UK increased on 1 April, affecting approximately 2.7 million workers. The National Living Wage for workers aged 21 and over reached £12.71 per hour, representing a 50p increase from the previous rate. For full-time employees working 37.5 hours weekly, this translates to annual earnings of £24,784.50, an increase of £900 per year.
Workers aged 18 to 20 saw their minimum wage rise to £10.85 per hour, an increase of 85p hourly, which amounts to £1,500 more annually for full-time positions. The government stated its intention to eventually eliminate the separate rate for this age group and implement a unified adult minimum wage. Additionally, minimum wage for 16 and 17-year-olds increased to £8 per hour. Apprentices follow differentiated pay structures based on age and apprenticeship stage, with those 19 and older or beyond their first year eligible for age-appropriate minimum or living wage rates.
Certain categories of workers remain excluded from minimum wage protections, including the self-employed, company directors, volunteers, armed forces members, and prisoners. Individuals with disabilities or long-term unemployment participating in government work programmes receive fixed amounts below the applicable minimum rates. Employers face criminal penalties for non-compliance with minimum wage requirements, which apply regardless of payment method. The government reported that 389 employers had been fined approximately £12.6 million for wage violations, with employers required to repay £7.3 million to roughly 60,000 underpaid workers. Enforcement actions have targeted major employers including Busy Bees nursery chain, Norwich City Football Club, Hays Travel, and Costa Coffee.
Separately, the Living Wage Foundation oversees the Real Living Wage, an unofficial rate designed to reflect actual living costs. This voluntary standard was set to increase by 4.8% to £14.10 per hour in October 2026, with London’s rate rising by 4.4% to £15.45. The foundation reports nearly 500,000 employees at approximately 17,000 firms voluntarily receive this higher rate, which exceeds the legal minimum by over £2,700 annually, or more than £5,300 in London.
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