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 hourly pay rate mandated by law that employers must adhere to for both full-time and part-time workers, with the specific rate varying based on the individual’s age.
For individuals aged 21 and above, the minimum wage will see a 4.1% boost from £12.21 per hour to £12.71 per hour, effective from April 2026. Those between the ages of 18 and 20 will witness their rate climb from £10 per hour to £10.85 per hour.
For individuals under 18 or those in apprenticeships, the minimum wage will increase from £7.55 per hour to £8 per hour. It’s important to note that many employers already pay their employees above the minimum wage.
The announcement of 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 the workforce, particularly those on lower incomes. The intent behind the wage raise is to ensure that individuals earning low incomes are justly compensated for their hard work.
The minimum wage is categorized as the National Living Wage for individuals above 21 years old, while those below 21 receive the National Minimum Wage. However, it’s worth mentioning that self-employed individuals, volunteers, and company directors are not subject to minimum wage regulations. Some companies adhere to the Real Living Wage, which is a voluntary wage benchmark exceeding the statutory minimum wage, calculated based on the cost of living.
The Real Living Wage is set to increase to £13.45 per hour outside London and £14.80 per hour within London. Employers are required to implement these revised rates by May 2026.
In cases where employees suspect they are being underpaid, they are advised to review their payslips and address any discrepancies with their employers initially. If the issue persists, seeking guidance from the Advisory, Conciliation and Arbitration Service (ACAS) is recommended to explore available options.
As a final recourse, individuals can consider taking legal action against their employers; however, it is advisable to seek advice from ACAS or Citizens Advice beforehand to understand the associated procedures and costs. Reporting the employer to HM Revenue and Customs (HMRC) is another avenue, with potential fines imposed if non-compliance is identified.
HMRC has the authority to take legal action against non-compliant employers on behalf of the affected employees. According to ACAS guidelines, individuals are advised against pursuing the same issue through multiple legal processes simultaneously.