When Does Minimum Wage Go Up 2026? New UK Rates from April

If you’re asking when does minimum wage go up 2026, the answer is 1 April 2026. That’s the date the new National Minimum Wage (NMW) and National Living Wage (NLW) rates come into force across the UK. The increases follow recommendations from the Low Pay Commission and were confirmed by the National Minimum Wage (Amendment) Regulations 2026.

New Minimum Wage Rates from April 2026

From 1 April 2026, the hourly rates are:

• National Living Wage (21 and over): £12.71 (up from £12.21, a 4.1% increase)
• 18-20 Year Old Rate: £10.85 (up from £10.00, an 8.5% increase)
• 16-17 Year Old Rate: £8.00 (up from £7.55, a 6.0% increase)
• Apprentice Rate: £8.00 (up from £7.55, a 6.0% increase)
• Accommodation Offset: £11.10 per day (up from £10.66, a 4.1% increase)

These rates apply across England, Wales, Scotland and Northern Ireland. The NLW now covers everyone aged 21 and over, following the extension from age 25 in previous years.

Converting Hourly Rates to Annual Salary

To understand what these hourly rates mean for your yearly income, use the standard conversion: annual salary ≈ hourly rate × hours per week × 52 weeks. For a typical full-time week of 37.5 hours (common in many sectors), here are the annual equivalents:

• NLW £12.71/hr: £12.71 × 37.5 × 52 = £24,784.50 per year (about £2,065 per month gross)
• 18-20 rate £10.85/hr: £10.85 × 37.5 × 52 = £21,157.50 per year
• 16-17 / apprentice rate £8.00/hr: £8.00 × 37.5 × 52 = £15,600 per year

Remember, these are gross figures before tax, National Insurance, and any pension deductions. Your actual take-home pay will also depend on whether you receive Universal Credit or other benefits. Use our Hourly to Salary tool to calculate your own figures based on your exact hours.

What the Increase Means for Your Pay Packet

The 4.1% NLW rise is designed to keep ahead of inflation and deliver a real-terms increase for minimum wage workers. However, because income tax thresholds remain frozen, some workers will see a slightly smaller percentage increase in their net pay. For example, a single full-time worker on NLW (35 hours per week) will see their weekly take-home income rise by about 3.3% (roughly £11.90), according to the Low Pay Commission’s analysis.

On the positive side, the Government is also increasing the Universal Credit standard allowance by 6.2% in 2026. For NLW workers who receive UC, this means a bigger boost to household income than the headline 4.1% wage rise alone.

Looking Ahead: Minimum Wage in 2027

The Low Pay Commission’s 2026 report indicates that the Government’s remit continues to target two-thirds of median hourly earnings for workers aged 21 and over. Based on current wage forecasts, the rate needed to maintain that target in October 2027 is estimated to be in the range £13.02 to £13.34, with a central estimate of £13.18. That would represent an increase of 2.4% to 5.0% over the 2026 NLW.

How Does the Minimum Wage Compare to Average Earnings?

For context, the Office for National Statistics (ONS) Annual Survey for Hours and Earnings (ASHE) 2026 shows that median full-time gross annual pay in the UK is around £39,039. That’s roughly £20.02 per hour at 37.5 hours per week. The NLW of £12.71 is about 63% of that median hourly rate, reflecting the Government’s target of two-thirds.

Important Caveats

• The annual salary conversions above assume a steady 37.5-hour week, 52 weeks a year, with no unpaid overtime, bonuses, tips, or salary sacrifice.
• Actual pay depends on your rota, holiday pay method, London weighting (if applicable), and overtime rules.
• The accommodation offset of £11.10 per day is the maximum an employer can deduct for providing living accommodation; it is not a wage rate.
• Always check your contract and official GOV.UK guidance for your specific situation.

For more detailed salary data and comparisons, visit our salary data page. You can also explore topics related to UK pay scales and hourly-to-salary conversion.

Summary

The minimum wage goes up on 1 April 2026 with the NLW reaching £12.71 per hour. Whether you’re a job seeker evaluating an hourly offer or an employee checking your new rate, understanding the conversion to annual salary helps you plan your finances. Use the formula hourly × hours per week × 52, and remember that your net income may be affected by tax thresholds and benefit changes.