The National Minimum Wage and National Living Wage increases this month
From the start of April 2026, the National Minimum Wage rates increased, giving workers over 21 on the National Living Wage an extra 50p per hour while workers under 21 saw rises as high as 85p per hour in order to close the gap between pay rates.
However, experts have warned these rises will still leave full-time workers on the National Living Wage £1,400 behind the ‘real’ Living Wage. This shortfall could potentially cover four months worth of groceries or three months of transport costs for a household according to the Living Wage Foundation.
Each year, the foundation sets the Real Living Wage, which is a rate calculated based on the cost of living. It takes into account how much a worker on this wage would need to cover essentials like food, rent and bills.
Unlike the Minimum Wage rates, it’s completely voluntary, although over 16,000 UK employers reportedly offer their employees this wage already. The foundation also says this rate should be applied to all workers over the age of 18 in recognition of the fact that even young people may be facing the same cost of living as everyone else.
The National Minimum Wage for 18 to 20 year olds is getting the biggest increase this year at 8.5%, taking it up to £10.85 per hour. The rates for 16 to 17 year olds and the apprentice rate are rising to £8 per hour.
Finally, the National Living Wage for workers aged 21 and over is increasing by 4.1% to £12.71 per hour. Rachel Reeves announced this rises in November, stating it would boost pay packets for around 2.7 million workers “so that those on low incomes are properly rewarded for their hard work”.
Currently, the Real Living Wage stands around £13.45 in the UK and £14.80 in London. For London-based workers on the National Living Wage, this adds up to a £4,076 difference which could cover a year’s worth of food bills for a household.
Katherine Chapman, Executive Director of the Living Wage Foundation, said: “The rise to the minimum wage is a welcome boost for low-paid workers who have been hit hardest by years of high prices.
“It still falls short of the voluntary real Living Wage, the only UK wage rate independently calculated based on the cost of living, currently £13.45 across the UK and £14.80 in London.
“Despite tough times for businesses over the last year, we are still seeing more employers join the movement of over 16,000 Living Wage Employers who are committed to paying their workers in line with the cost of living.
“That’s because they know the Living Wage is good for people, good for society and good for business.”
Research by the Living Wage Foundation and Cardiff Business School published earlier this year claimed that if half of the UK’s 4.4 million low-paid workers started receiving the real Living Wage, the rise in wages, productivity and spending could deliver a £1.6billion boost to the economy.
