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 amount an employer is obligated to pay as per legislation. The specific rate of payment is determined by the individual’s age and is applicable to both full-time and part-time workers.
For individuals aged 21 and above, the minimum wage will climb by 4.1%, moving from £12.21 per hour to £12.71 per hour from April 2026. Those falling within the 18 to 20 age bracket will witness their rate escalate from £10 per hour to £10.85 per hour.
If an individual is below 18 years old or is an apprentice, the minimum wage is being raised from £7.55 per hour to £8 per hour. While many employers already pay higher than the minimum wage, these changes are aimed at ensuring fair compensation for those on lower incomes.
The announcement regarding this wage increase was made in November 2025 by Chancellor Rachel Reeves, who emphasized the importance of addressing the cost of living challenges faced by working individuals. The National Living Wage pertains to those above 21 years old, while the National Minimum Wage applies to those under 21.
Notably, minimum wage rates are not applicable to self-employed individuals, volunteers, or company directors. Some organizations opt to pay the Real Living Wage, a voluntary wage structure based on living costs and exceeding statutory minimums.
The Real Living Wage is set to increase to £13.45 per hour outside London and £14.80 per hour within London. Employers are mandated to implement these revised rates by May 2026.
Individuals who suspect they are being underpaid are advised to review their pay slips and communicate with their employers initially to rectify any discrepancies. If this approach fails, seeking guidance from the Advisory, Conciliation, and Arbitration Service (ACAS) is recommended as a next step to address the issue effectively.
As a final recourse, taking the matter to a tribunal is an option, but it is advisable to seek counsel from ACAS or Citizens Advice beforehand for a clear understanding of the potential processes and associated costs. Reporting non-compliant employers to HMRC may also prompt investigations and potential penalties if violations are discovered. ACAS guidelines stress the importance of not pursuing the same issue through multiple legal avenues.