The National Living Wage — the government's headline minimum wage for workers aged 21 and over — rose to £12.60 per hour from 1 April 2026, an increase of 6.7% on the previous year.
For a full-time worker on the minimum wage (assumed to be 37.5 hours per week), that represents annual earnings of approximately £24,570 before tax — around £20,400 after income tax and National Insurance.
All the Rates for 2026
- National Living Wage (21+): £12.60 per hour
- 18-20 year old rate: £10.00 per hour
- 16-17 year old rate: £7.55 per hour
- Apprentice rate: £7.55 per hour
The gap between youth rates and the main rate has been a consistent point of controversy. The Low Pay Commission — the independent body that recommends minimum wage levels — has urged faster convergence.
Who Benefits Most
Around 1.8 million workers received a direct pay increase from the April 2026 uplift, according to HMRC estimates. The largest concentrations are in retail, hospitality, social care, and cleaning services.
Women account for around 55% of minimum wage workers. Part-time workers are disproportionately represented. Workers in the East Midlands and Yorkshire and Humber are more likely to be on or near minimum wage than those in London and the South East.
Has It Worked?
The evidence on minimum wage effects is more positive than classical economic theory would have predicted. Employment in minimum wage sectors has not fallen significantly despite successive above-inflation increases.
However, critics note that in-work poverty remains high even at minimum wage rates. The Real Living Wage — a voluntary standard calculated by the Resolution Foundation based on actual living costs — stands at £13.85 in London and £12.60 nationally, meaning the government minimum has now reached the national Real Living Wage but still falls short of the London figure.
