What is the UK minimum wage?

The UK minimum wage is a legal floor on pay, below which no employer may pay an eligible worker. The main rate, known as the National Living Wage, is £12.82 an hour from April 2026 for workers aged 21 and over. Separate, lower rates apply to younger workers and apprentices. The rates are set by the government each year following recommendations from the Low Pay Commission, an independent body that advises on minimum wage levels. Paying below the minimum wage is a criminal offence and carries significant financial penalties.

How the minimum wage is set

The Low Pay Commission is a statutory body made up of employer representatives, trade union representatives, and independent economists. It collects evidence each year on the state of the labour market, the impact of previous minimum wage increases on employment, and the cost of living, and makes a recommendation to the government on what the following April's rate should be. Governments are not legally required to accept the LPC's recommendation but have done so in practice in most years.

Since 2015, government policy has been to increase the National Living Wage towards a target expressed as a percentage of median earnings. The original target was 60 percent of median hourly pay. Subsequent governments have maintained and extended the target, meaning the minimum wage has risen faster than median wages over the past decade, progressively narrowing the gap between the lowest-paid workers and the middle of the earnings distribution.

The current rates and age bands

The UK minimum wage is not a single rate. There are four rates, applying to different groups of workers. From April 2026, the rates are as follows. Workers aged 21 and over receive the National Living Wage of £12.82 an hour. Workers aged 18 to 20 receive £10.60 an hour. Workers under 18 who are above the school leaving age receive £7.74 an hour. Apprentices receive £7.74 an hour if they are under 19 or in the first year of their apprenticeship; older apprentices beyond their first year receive the rate appropriate to their age.

The age threshold for the full National Living Wage was lowered from 23 to 21 in April 2024, which brought a larger group of workers into the top rate. Before that change, workers aged 21 to 22 received a separate, lower rate. The current structure has three main age bands plus the apprentice rate.

National minimum wage versus national living wage: the terminology

The terminology is confusing because the government changed the branding in 2016. The National Living Wage was introduced as the name for the top minimum wage rate (then applying to workers aged 25 and over), even though it is a government-mandated legal minimum rather than a wage calculated from the actual cost of living. The National Minimum Wage continues to exist as the name for the lower rates applying to younger workers.

Separately, the Living Wage Foundation sets a voluntary Real Living Wage, calculated from actual living costs, which is higher than the government's National Living Wage. Employers who pay the Real Living Wage and meet certain other criteria can become accredited Living Wage Employers. The two rates are entirely distinct: one is a legal minimum, the other is a voluntary standard. For more on the distinction and the 2026 specific rates, see our note on the UK minimum wage in 2026.

How rates have risen

The pace of minimum wage increases has been substantial since 2020. The National Living Wage was £8.72 an hour in April 2020. By April 2023 it had reached £10.42, by April 2024 it was £11.44, and by April 2025 it was £12.21. The 2026 rate of £12.82 represents a 47 percent increase in six years. That increase has outpaced both general wage growth and inflation over the same period, meaning the real value of the minimum wage has risen relative to both prices and typical wages.

The rapid increase has been most consequential for sectors with high concentrations of minimum-wage workers: retail, hospitality, social care, logistics, and agriculture. Employer payroll costs in those sectors have risen sharply as the minimum wage floor has moved upward. The April 2025 increase in employer National Insurance contributions compounded the effect.

What employers need to know

Employers must pay at least the minimum wage to all eligible workers, including part-time, casual, and zero-hours contract workers. The obligation applies to the total pay received, not just basic pay: deductions that bring total pay below the minimum wage, for example charges for uniforms or accommodation provided by the employer, may breach the rules even if the headline rate appears compliant. HMRC enforces compliance and can issue notices of underpayment, requiring repayment at the current rate plus a financial penalty of up to 200 percent of the arrears.

For the broader context on UK wages, including how the average UK wage compares to the minimum, and what the cost of living crisis has meant for real purchasing power at all wage levels, see our related notes. The CPIx tracks the wage component of consumer financial pressure in real time. The Briefed daily briefing covers each minimum wage announcement and its implications. Free, weekdays at 6:45am.