Millions of employees are set to receive a boost in the minimum wage starting in April of this year. The minimum wage represents the lowest hourly payment mandated by law from employers to their workers, with rates varying based on age and applying to both full-time and part-time positions.
Individuals aged 21 and above will experience a 4.1% increase in the minimum wage, climbing from £12.21 per hour to £12.71 per hour by April 2026. Likewise, individuals aged between 18 and 20 will witness a rise from £10 to £10.85 per hour.
For those under 18 or apprentices, the minimum wage is set to increase from £7.55 per hour to £8 per hour, although many employers already pay above the minimum wage.
The announcement of the wage increase was made in November 2025 by Chancellor Rachel Reeves, who emphasized the importance of addressing the cost of living concerns faced by workers on lower incomes.
The National Living Wage applies to individuals aged 21 and above, while those under 21 are entitled to the National Minimum Wage. Notably, the minimum wage rates do not extend to self-employed individuals, volunteers, or company directors. Some companies opt to pay the Real Living Wage voluntarily, which surpasses the minimum wage and is calculated based on the cost of living.
The Real Living Wage is set to increase to £13.45 per hour outside of London and £14.80 per hour within London, with employers required to implement the new rates by May 2026.
Employees who suspect they are being underpaid should first review their payslips and then address the issue with their employer. If resolution is not achieved, they can seek assistance from the Advisory, Conciliation and Arbitration Service (ACAS) to explore further options.
As a last resort, employees can take legal action against their employer, with the option to report non-compliance to HMRC for investigation and potential fines. ACAS advises individuals to seek guidance before pursuing legal action to understand the associated costs and processes.
Remember, you cannot pursue the same issue through multiple legal processes, as outlined by ACAS guidelines.