How Much Is Minimum Wage Going Up in 2026? New Rates and Age Band Changes Explained

How Much Is Minimum Wage Going Up in 2026? A Guide to the New Rates and Age Bands

If you’re wondering how much is minimum wage going up in 2026, the answer depends on your age and employment status. From 1 April 2026, all statutory minimum wage rates increase, following recommendations from the Low Pay Commission that were accepted in full by the Government. This article breaks down the new rates, explains the age bands, and looks at what the changes mean for your take-home pay.

National Living Wage (Aged 21 and Over)

The National Living Wage (NLW) for workers aged 21 and over rises by 4.1% to £12.71 per hour. That’s an increase of 50 pence from the previous rate of £12.21. According to GOV.UK guidance, this is expected to keep the NLW ahead of the cost of living up to March 2027, providing a real-terms increase for minimum wage workers. The Low Pay Commission notes that the real value of the NLW has grown by more than 75% since 2009.

National Minimum Wage for 18-20 Year Olds

The rate for workers aged 18 to 20 sees a larger percentage increase of 8.5%, reaching £10.85 per hour (up from £10.00). This is part of the Government’s commitment to reduce and eventually eliminate the gap between the NLW and the rate for younger adults. The 18-20 rate now stands at 85% of the NLW, a proportion similar to the early years of the National Minimum Wage.

Rates for Under-18s and Apprentices

Both the 16-17 Year Old Rate and the Apprentice Rate increase by 6% to £8.00 per hour (up from £7.55). The apprentice rate applies to apprentices under 19 or those in the first year of their apprenticeship. After the first year, apprentices must be paid the appropriate minimum wage for their age.

Accommodation Offset

If your employer provides living accommodation, the daily offset amount rises to £11.10 (from £10.66). This is the maximum amount that can be counted towards your pay for accommodation purposes.

What Does This Mean for Your Pay Packet?

The headline hourly rates are statutory minimums, but your actual take-home pay will depend on your hours, tax code, and any benefits you receive. The Low Pay Commission’s analysis shows that the impact varies by household type. For example, a single full-time worker (35 hours per week) on the NLW would see a weekly take-home increase of about £11.90 (3.3%), partly because tax thresholds remain frozen. However, a couple with two children where one partner works full-time on the NLW would see a larger increase of at least 4.2%, as they remain eligible for Universal Credit, which is also rising by 6.2%.

Future Projections and the Path to a Single Adult Rate

The Low Pay Commission’s remit asks it to keep two-thirds of median hourly earnings as the key reference point for future NLW rates. Based on current wage forecasts, the rate needed to maintain that level by October 2027 is projected to be in the range of £13.02 to £13.34, with a central estimate of £13.18. This is an illustrative guide and will be reviewed in light of economic conditions.

The Government has also restated its commitment to lowering the NLW age of eligibility from 21 to 18, but the Low Pay Commission has full flexibility to determine the pace. If the age were lowered to 20 next year, it would reduce the median wage of the eligible population, potentially lowering the reference point by about 10 pence.

Coverage and Compliance

The number of jobs paid at or just above the NLW is projected to fall slightly, from 1.76 million in April 2025 to 1.70 million in April 2026, representing about 5.9% of all jobs. This is due to stronger-than-forecast wage growth in late 2025. Employers must ensure they pay at least the correct rate for each worker’s age. You can check your entitlement using our pay guides or pay data pages.

Key Takeaways

• 21 and over: £12.71 per hour (up 50p)
• 18-20: £10.85 per hour (up 85p)
• 16-17: £8.00 per hour (up 45p)
• Apprentices: £8.00 per hour (up 45p)
• Accommodation offset: £11.10 per day

These rates are the legal minimum. Many employers pay above the minimum, especially in sectors with labour shortages. For more detailed guidance on how the rates apply to your situation, visit our topics page or read more about the UK Minimum Wage.

Remember: your age on the day you are paid determines which rate applies. If you are 20 but turn 21 during a pay reference period, you may be entitled to the higher rate for the whole period if your contract says so. Always check your payslip and contract.

Frequently Asked Questions

How much is minimum wage going up in 2026 for workers aged 21 and over? The National Living Wage for workers aged 21 and over increases by 4.1% to £12.71 per hour from April 2026. This is a rise of 50 pence per hour compared to the previous rate of £12.21.

What are the new minimum wage rates for 18-20 year olds and under-18s in 2026? From April 2026, the rate for 18-20 year olds rises by 8.5% to £10.85 per hour. The rate for 16-17 year olds increases by 6% to £8.00 per hour. The apprentice rate also rises to £8.00 per hour.

Will the minimum wage increase affect my take-home pay differently if I receive Universal Credit? Yes. The Government is also increasing the Universal Credit standard allowance by 6.2% from April 2026, which is higher than the NLW increase. Workers who receive UC will see a larger boost to their take-home income than the headline 4.1% rise. However, workers who pay tax but do not receive UC may see a smaller increase because tax thresholds remain frozen.