How Much Is Minimum Wage Going Up in 2026?

If you're wondering how much is minimum wage going up in the UK, the answer is clear: from April 2026, the National Living Wage (NLW) for workers aged 21 and over rises to £12.71 per hour. That's a 4.1% increase of 50 pence, following recommendations from the Low Pay Commission. The government has confirmed these rates, and they apply across England, Wales, Scotland, and Northern Ireland.

What Are the New Minimum Wage Rates?

The table below summarises the new rates effective from 1 April 2026, as published by GOV.UK:

Age group / category	Rate from April 2026	Increase
National Living Wage (21+)	£12.71	+50p (4.1%)
18-20 year old rate	£10.85	+85p (8.5%)
16-17 year old rate	£8.00	+45p (6.0%)
Apprentice rate	£8.00	+45p (6.0%)
Accommodation offset	£11.10	+44p (4.1%)

These increases are designed to keep the NLW ahead of expected inflation, giving workers a real-terms pay rise. The Low Pay Commission projects that two-thirds of median hourly earnings for those aged 21 and over will be around £13.18 by October 2027, meaning further increases are likely.

Converting Hourly Rates to Annual and Monthly Salary

To understand what the new minimum wage means for your yearly income, use the standard conversion: annual salary ≈ hourly rate × hours per week × 52 weeks. For a typical full-time contract of 37.5 hours per week:

• NLW £12.71/hour: £12.71 × 37.5 × 52 = £24,784.50 per year (about £2,065 per month before tax).
• 18-20 rate £10.85/hour: £10.85 × 37.5 × 52 = £21,165 per year.
• Apprentice rate £8.00/hour: £8.00 × 37.5 × 52 = £15,600 per year.

Remember, these are gross figures. Your take-home pay will be lower after income tax, National Insurance, pension contributions, and any student loan deductions. The Hourly to Salary tool on this site can help you calculate your exact annual and monthly equivalents based on your own hours.

How Does the NLW Compare to Other Benchmarks?

The UK median full-time gross annual pay is around £39,039 (based on recent ONS data), which equates to roughly £20.02 per hour at 37.5 hours. The new NLW of £12.71 is about 63% of that median, in line with the government's target of two-thirds.

For public sector workers, NHS pay scales for 2026/27 provide a useful comparison. According to NHS Employers, the lowest NHS band (Band 1, closed to new entrants) starts at £12.92 per hour, just above the NLW. Band 2 (e.g., healthcare assistants) starts at £12.92 per hour, with annual salaries from £25,272. Band 5 (newly qualified nurses) starts at £16.40 per hour, or £29,970 per year. In inner London, Higher Cost Area Supplements (HCAS) boost these rates significantly – for example, a Band 5 entry point in inner London pays £19.68 per hour (£38,488 annual).

If you're considering a career in the NHS or other sectors with London weighting, our salary data pages break down typical earnings by region and role.

Impact on Take-Home Pay and Benefits

The headline 4.1% increase doesn't tell the whole story. The Low Pay Commission's analysis shows that the effect on household income depends on tax and benefit interactions:

• Workers on Universal Credit: The government is also raising the UC standard allowance by 6.2% in April 2026 – higher than the NLW rise. This means NLW workers who receive UC could see a larger increase in their net income than 4.1%.
• Workers not on UC: Those who pay tax but don't receive UC may see a smaller net increase because income tax thresholds remain frozen, pushing more of their earnings into higher tax bands.
• Full-time NLW worker (35 hours): A single person working 35 hours per week at the NLW would see a 3.3% increase in weekly take-home pay (about £11.90 more per week).

It's also worth noting that the accommodation offset (the maximum an employer can deduct for accommodation) rises to £11.10 per day, which affects live-in workers.

What About Overtime and London Weighting?

When converting hourly rates to salary, always check your contract for overtime rules. The NLW applies to basic hours; overtime may be paid at a higher rate, but there's no legal requirement for a premium. London weighting can add 5% to 20% to basic pay, especially in the NHS and other public services. For example, inner London HCAS adds 20% of basic salary (minimum £5,794, maximum £8,746).

Our hourly calculator lets you factor in overtime and location supplements to get a more accurate annual estimate.

Summary

The minimum wage is going up by 4.1% in April 2026, taking the National Living Wage to £12.71 per hour. For a full-time worker on 37.5 hours, that's an annual salary of about £24,785. Younger workers and apprentices also see above-inflation increases. Use the conversion formula above or our tools to see what this means for your personal finances. And remember, actual pay depends on your exact hours, overtime, and any location allowances – always refer to your contract and official guidance.

For more insights on UK salary benchmarks, visit our topics page covering everything from NHS pay to the National Minimum Wage.