Millions of workers across the United Kingdom are set for a significant pay increase in 2026, as the government confirms a substantial rise in the statutory minimum wage rates.
New Hourly Rates Announced
From April 2026, the lowest hourly pay that employers can legally offer will see a notable uplift. The key change affects the National Living Wage, which applies to workers aged 21 and over. Their rate will jump by 4.1%, moving from £12.21 to £12.71 per hour.
Younger workers will also benefit from the wage boost. Those aged 18 to 20 will see their National Minimum Wage increase from £10.00 to £10.85 an hour. For apprentices and workers under the age of 18, the rate will rise from £7.55 to £8.00 per hour.
Government Aims to Tackle Cost of Living
Chancellor Rachel Reeves announced the planned increase in November 2025, framing it as a direct response to ongoing financial pressures. "I know that the cost of living is still the number one issue for working people," Reeves stated, adding that the economy was not working well enough for those on the lowest incomes.
She emphasised the government's commitment to ensuring hard work is properly rewarded, saying: "Too many people are still struggling to make ends meet. And that has to change."
It is important to note that these statutory rates represent a legal floor. Many employers choose to pay more, and some sign up to the voluntary Real Living Wage, which is based on the actual cost of living. This voluntary rate is set to rise to £13.45 an hour outside London and £14.80 an hour within the capital.
What to Do If You Suspect Underpayment
With the new rates coming into force, employees should be vigilant to ensure they are paid correctly. The first step if you suspect underpayment is to check your payslip carefully. If a discrepancy is found, you should initially raise the issue directly with your employer to allow them to correct it.
If this does not resolve the problem, you can seek help from ACAS (the Advisory, Conciliation and Arbitration Service), an independent government body that offers free advice on workplace rights. As a last resort, you can take your employer to an employment tribunal, but seeking advice from ACAS or Citizens Advice first is strongly recommended to understand the process and potential costs.
Alternatively, you can report your employer to HMRC. The tax authority has the power to investigate and can fine employers who fail to pay the legal minimum. In severe cases, HMRC can even take the employer to court on the worker's behalf.
Employers must implement these new statutory rates by May 2026. The increases do not apply to the self-employed, volunteers, or company directors.
