Millions of employees are set to experience an increase in the minimum wage starting in April of this year. The minimum wage represents the lowest hourly pay rate that employers are legally obligated to provide, varying based on the individual’s age, and is applicable to both full-time and part-time workers.
For individuals aged 21 and over, the minimum wage will see a 4.1% rise from £12.21 per hour to £12.71 per hour commencing April 2026. Those aged between 18 and 20 will witness their hourly rate increase from £10 to £10.85.
If you are under 18 or working as an apprentice, the new minimum wage will escalate from £7.55 per hour to £8 per hour. It’s worth noting that many employers already compensate their employees above the minimum wage threshold.
The announcement of this wage hike was made in November 2025 by Chancellor Rachel Reeves, who emphasized the importance of addressing the cost of living challenges faced by the workforce, especially those with lower incomes. Reeves highlighted the imperative to ensure that individuals on modest incomes are duly recognized for their diligent efforts by raising both the National Living Wage and the National Minimum Wage.
Individuals aged 21 and above are considered under the National Living Wage category, while those under 21 fall under the National Minimum Wage bracket. Notably, the minimum wage regulations do not extend to self-employed individuals, volunteers, or company directors. Some companies opt to adhere to the Real Living Wage, a voluntary pay scheme that surpasses the statutory minimum wage and is aligned with the actual cost of living.
The Real Living Wage is increasing to £13.45 outside London and £14.80 within London. Employers are mandated to implement these updated rates by May 2026.
In case you suspect you are being underpaid, start by reviewing your payslip. If discrepancies are identified, communicate with your employer first to address the issue. Should the matter remain unresolved, contacting the Advisory, Conciliation and Arbitration Service (ACAS) for further guidance is recommended. As a final option, seeking legal recourse through a tribunal could be pursued, with advice from ACAS or Citizens Advice being instrumental in navigating the process and potential costs involved.
Alternatively, reporting your employer to HMRC can prompt an investigation into potential minimum wage violations, potentially resulting in fines for non-compliance. ACAS guidelines underscore the importance of not simultaneously pursuing the same issue through multiple legal channels.