Business Wednesday, Jan 14

For someone aged 21 and over, minimum wage will rise by 4.1% from £12.21 an hour to £12.71 an hour from April 2026

Millions of workers will see the minimum wage rise from April this year.

Minimum wage is the lowest hourly rate an employer has to pay you, according to law. How much you should be paid depends on your age, and it applies to both full-time and part-time workers.

For someone aged 21 and over, minimum wage will rise by 4.1% 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.

If you are under 18 or you’re an apprentice, minimum wage is rising from £7.55 an hour to £8 an hour. Many employers do pay above the minimum wage.

Announcing the increase in November 2025, Chancellor Rachel Reeves said: “I know that the cost of living is still the number one issue for working people and that the economy isn’t working well enough for those on the lowest incomes.

“Too many people are still struggling to make ends meet. And that has to change. That’s why today I’m announcing that we will raise the National Living Wage and also the National Minimum Wage, so that those on low incomes are properly rewarded for their hard work.”

If you are above the age of 21, then the minimum wage is known as the National Living Wage, while anyone under the age of 21 is paid the National Minimum 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.

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.”

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