Pay packets across the United Kingdom are set to increase next month as the government raises the National Living Wage and National Minimum Wage for millions of workers. The adjustments, effective on 1 April, represent the first broad-based wage hike under the current administration, though they fall short of Labour’s manifesto promise to narrow the disparity between older and younger earners.
The National Living Wage and National Minimum Wage
The official pay rates will rise for 2.3 million workers on 1 April. The rate for those aged 21 and over—known as the National Living Wage—will climb to £13.21 per hour, an increase of 50p from the current £12.71. Meanwhile, the rate for 18 to 20-year-olds will rise to £11.27 from £10.85. For full-time workers putting in 35 hours a week, these increments translate into roughly £910 more in gross annual earnings for the over-21s, and £760 for the under-21s. Yet, despite the broad-based hikes, there is no progress on Labour’s manifesto promise to narrow the gap in minimum wages between older and younger workers.
Apprentice Rates and Age Bands
Different rates apply depending on age and apprenticeship stage. Those aged 16 to 18 are entitled to the National Minimum Wage rate for their age group, which stands at £8 per hour but will rise by 3.9% to £8.31 in April. Apprentices aged 19 or in their first year of training receive the same amount. But those over 19, or who have already completed their first year, are paid the appropriate National Minimum or National Living Wage rate for their specific age bracket.
Who Qualifies and Employer Obligations
Certain workers do not qualify for either the National Minimum Wage or the National Living Wage. This excludes the self-employed, company directors, volunteers, members of the armed forces, and prisoners. People with disabilities or in long-term unemployment who take part in government work programmes are paid fixed amounts at different stages of the scheme, which are less than the equivalent legal minimum. Employers must pay the correct rates; it is a criminal offence to fail to do so. Eligible employees can complain via the HMRC website, and workplace experts Acas can also provide advice.
Penalties for Non-Compliance and the Real Living Wage
When employers fall short, HMRC steps in to penalise them. In March 2026, the government revealed that 389 employers had been fined approximately £12.6 million for failing to pay staff properly, requiring them to repay a further £7.3 million to roughly 60,000 underpaid workers. Notable firms named in the enforcement actions include the Nursery chain Busy Bees, Norwich City Football Club, Hays Travel, and Costa Coffee.
