The minimum wage increase was first confirmed in the Budget in November 2025, but was referenced again today in the Spring Statement
Millions of workers will see their pay rise from next month as the minimum wage increases.
The minimum wage is the lowest hourly rate an employer has to pay you by law, depending on your age. If you’re over the age of 21, the minimum wage will rise from £12.21 an hour to £12.71 an hour from April 2026.
Those aged 18 to 20 will see their rate rise from £10 an hour to £10.85 an hour. Under-18s and apprentices will see their minimum wage increase from £7.55 an hour to £8 an hour.
Many employers do pay above the minimum wage. The minimum wage increase was first confirmed in the Budget in November 2025, but was referenced again today in the Spring Statement.
For someone working 40 hours a week, their pay will increase from £25,397 to £26,437 a year – a boost of approximately £1,040.
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If you are above the age of 21, then the minimum wage is known as the National Living Wage. Minimum wage rates do not apply if you are self-employed, volunteers and company directors.
Some companies pay the Real Living Wage, which is a voluntary pay that is based on the cost of living and is higher than the statutory minimum wage.
The Real Living Wage is rising to £13.45 an hour outside London, and £14.80 an hour inside London. Employers must implement these new rates by May 2026.
But in less good news, the latest forecast from the Office for Budget Responsibility (OBR) predicts unemployment will be higher than expected for the next two years.
Latest data from the Office for National Statistics (ONS) showed that unemployment lifted to a five-year-high of 5.2% in the three months to December.
The OBR had previously predicted that the jobless rate would increase to 4.9% in 2026. New forecasts show that unemployment is to peak at 5.3% in 2026, before falling to 4.9% in 2027 and 4.4% in 2028.
It had previously forecast it would be 4.6% in 2027 and 4.3% the following year. Ms Reeves also said that unemployment is “set to peak later this year” before reducing over the following years.
Check if you’re being underpaid
If you think you may be being underpaid, start by checking your payslip. If it looks like you haven’t been paid at least the minimum wage, talk to your employer first to give them the chance to put this right.
If this doesn’t resolve your issue, you can contact the Advisory, Conciliation and Arbitration Service (ACAS) service, which is an independent UK government body, to discuss your next options.
Your last resort is to take your employer to a tribunal – but seek advice from ACAS or Citizens Advice on this first, so you can be aware of the costs involved.
You could also choose to report your employer to HMRC, who will then decide whether to investigate. If your employer is found to have not paid you the minimum wage, they can be fined by HMRC.
HMRC can take them to court on behalf of the worker if the employer still refuses to pay. ACAS guidelines state you can either take your employer to a tribunal yourself, or complain to HMRC.
It says on the ACAS website: “You cannot take the same issue through two legal processes.”
