What Is the New Minimum Wage? Hourly, Weekly, and Annual Pay Explained

Understanding the New Minimum Wage Rates

If you are a UK worker or job seeker, you need to know what is the new minimum wage from April 2026. The government has increased statutory pay rates following recommendations from the Low Pay Commission. These rates apply across England, Wales, Scotland, and Northern Ireland.

National Living Wage and National Minimum Wage from April 2026

The key changes are:

• National Living Wage (21 and over): £12.71 per hour (up from £12.21, a 4.1% rise)
• 18-20 Year Old Rate: £10.85 per hour (up from £10.00, an 8.5% rise)
• 16-17 Year Old Rate: £8.00 per hour (up from £7.55, a 6% rise)
• Apprentice Rate: £8.00 per hour (up from £7.55, a 6% rise)
• Accommodation Offset: £11.10 per day (up from £10.66)

These rates are set out in the National Minimum Wage (Amendment) Regulations 2026 and come into force on 1 April 2026. GOV.UK guidance confirms that the National Living Wage now applies to workers aged 21 and over, not 25 as in previous years. The 18-20 rate is now 85% of the NLW, continuing the government’s commitment to eventually eliminate the gap.

Hourly vs Weekly vs Annual Pay

Statutory minimum wage rates are hourly, but most workers are paid weekly or monthly. To understand your actual earnings, you need to multiply the hourly rate by your contracted hours. For example:

• A full-time worker (35 hours per week) on the National Living Wage earns £444.85 per week gross, or £23,132.20 per year.
• A 20-year-old working 35 hours on the 18-20 rate earns £379.75 per week gross, or £19,747 per year.
• An apprentice working 30 hours earns £240 per week gross.

However, these are gross figures before deductions. The Office for National Statistics reports average weekly earnings for all employees at around £745, but minimum wage workers typically earn less. Your take-home pay will be lower after income tax, National Insurance, and any pension contributions. If you receive Universal Credit, your net income may increase more than the headline rate because of benefit changes.

Impact on Take-Home Pay

The Low Pay Commission’s 2026 report explains that the effect on household income depends on your circumstances. For a single person working 35 hours per week on the NLW, the weekly take-home increase from the 2026 uplift is about £11.90 (a 3.3% rise). This is because tax thresholds remain frozen, meaning more of the pay rise goes to tax and National Insurance. For a couple with two children where one person works full-time, the increase is larger (at least 4.2%) because they continue to receive Universal Credit, which also rises by 6.2%.

Apprentice and Young Worker Rates

Apprentices are entitled to the apprentice rate of £8.00 per hour if they are under 19, or aged 19 or over and in the first year of their apprenticeship. After completing the first year and turning 19, they must be paid the age-appropriate minimum wage. For example, a 21-year-old who has finished their first year is entitled to £12.71 per hour.

Accommodation Offset

If your employer provides living accommodation, they can count up to £11.10 per day towards your minimum wage. This means your cash wage can be lower by that amount, but only if the accommodation is provided. The offset is set by regulation and increases annually.

Future Outlook

The Low Pay Commission projects that the rate needed to stay at two-thirds of median hourly earnings for 21 and over will be between £13.02 and £13.34 by October 2027, with a central estimate of £13.18. This suggests further increases ahead, though the exact figure depends on economic conditions.

For more detailed guidance on how pay scales work in different sectors, see our pay guides page. You can also explore pay data for your industry and region.

Summary

Knowing what is the new minimum wage is essential for checking your pay entitlement. The statutory rates are hourly, but your weekly and annual earnings depend on your hours, deductions, and benefits. Always check your contract and the current rates on GOV.UK. If you think you are being underpaid, contact Acas for advice.