Understanding the Minimum Wage in London

When people ask what is the minimum wage in London, the short answer is that the statutory minimum wage is the same across the United Kingdom. The National Living Wage (NLW) for workers aged 21 and over is £12.71 per hour from April 2026, and the National Minimum Wage (NMW) for 18-20 year olds is £10.85 per hour, with younger workers and apprentices entitled to £8.00 per hour.

However, London’s higher cost of living means many employers – particularly in the public sector, finance, and professional services – pay above the legal floor. This additional pay is often called London weighting or a London allowance. The NHS, for example, publishes separate pay scales that include High Cost Area Supplements (HCAS) for inner London, outer London, and fringe areas NHS Employers.

National Minimum Wage Rates (UK-wide)

From 1 April 2026, the following rates apply:

• National Living Wage (21+): £12.71 per hour (up from £12.21)
• 18-20 Year Old Rate: £10.85 per hour (up from £10.00)
• 16-17 Year Old Rate: £8.00 per hour (up from £7.55)
• Apprentice Rate: £8.00 per hour (up from £7.55)
• Accommodation Offset: £11.10 per day (up from £10.66)

These rates are set by the Low Pay Commission and apply to all eligible workers regardless of location.

London Weighting and Regional Differences

While the legal minimum is uniform, actual pay in London is often higher. The ONS Annual Survey of Hours and Earnings (ASHE) for April 2025 shows median full-time weekly earnings of £766.60 across the UK, but London figures are typically above that average. Unfortunately, the latest ASHE release does not provide a London-specific median hourly rate, but it is well known that London commands a premium.

For NHS staff, London weighting is formalised through HCAS. In 2026/27, an inner London HCAS adds 20% of basic salary (minimum £5,794, maximum £8,746). This means a Band 5 nurse on the entry step receives an annual salary of £38,488 (including HCAS), equivalent to £19.68 per hour. Without HCAS, the same role would be £31,066 – a clear illustration of how London weighting boosts take-home pay NHS Employers.

Other sectors have their own arrangements. Many private companies in London offer a flat London allowance (e.g., £4,000–£6,000 per year) or a percentage uplift. Job seekers should always check whether a salary includes London weighting.

Converting Hourly to Annual Salary

To compare hourly rates with annual salaries, use the formula:

Annual salary ≈ hourly rate × contracted hours per week × 52 weeks

For a standard full-time week of 37.5 hours:

• NLW (£12.71) → £12.71 × 37.5 × 52 = £24,784.50
• Median UK hourly pay (£19.67) → £19.67 × 37.5 × 52 = £38,356.50 (close to the ONS median annual figure of £39,039)
• NHS Band 6 entry (£24.52) → £24.52 × 37.5 × 52 = £47,814

Remember that this is a rough guide. Actual annual pay may differ due to unpaid overtime, shift premiums, bonus payments, or salary sacrifice schemes. Use our Hourly to Salary calculator for a quick estimate, and always refer to your employment contract.

UK Earnings Benchmarks

According to ONS ASHE (April 2025):

• Median full-time weekly earnings: £766.60
• Median full-time hourly earnings (excluding overtime): £19.67
• Median full-time gross annual earnings: £39,039

These figures are for the UK as a whole. London median earnings are higher – for example, the median full-time salary in London is often estimated at around £45,000–£50,000, though precise figures depend on the source and year. The ONS does not publish a separate London median in the latest bulletin, but regional breakdowns are available in the ASHE dataset.

Conclusion

So, what is the minimum wage in London? The legal minimum is the same as the rest of the UK: £12.71 per hour for those aged 21 and over from April 2026. But in practice, London workers often earn more due to cost-of-living supplements. When evaluating a job offer, always check whether the salary includes London weighting and how it compares to the UK-wide benchmarks. For more detailed salary comparisons, explore our salary data pages and topics on regional pay differences.