Is the minimum wage going up in 2026? What the new rates mean for your take-home pay

Is the minimum wage going up in 2026? What you need to know

If you are a UK worker earning the minimum wage, you are probably asking yourself: is the minimum wage going up in 2026? The answer is yes. From 1 April 2026, all statutory minimum wage rates increase. The headline change is the National Living Wage (NLW) for workers aged 21 and over, which rises by 4.1% to £12.71 per hour. But the advertised rate is only part of the story. What you actually take home depends on tax, National Insurance, and any benefits you receive.

The new rates at a glance

Age group / category	Rate from April 2026	Increase
National Living Wage (21 and over)	£12.71 per hour	50p (4.1%)
18-20 Year Old Rate	£10.85 per hour	85p (8.5%)
16-17 Year Old Rate	£8.00 per hour	45p (6.0%)
Apprentice Rate	£8.00 per hour	45p (6.0%)
Accommodation offset	£11.10 per day	44p (4.1%)

These rates were recommended by the Low Pay Commission (LPC) and accepted by the Government. The LPC’s remit is to set the NLW at two-thirds of median hourly earnings, and the 2026 rate meets that target. You can read more about how these rates are calculated in our pay guides.

Advertised salary vs take-home pay: the gap explained

When you see a job advert offering the National Living Wage of £12.71 per hour, that is your gross pay before any deductions. Your actual take-home pay will be lower because of:

• Income tax – you start paying tax on earnings above the personal allowance (£12,570 per year in 2026/27).
• National Insurance – contributions are deducted on earnings above a certain threshold.
• Pension contributions – if you are enrolled in a workplace pension, a percentage of your pay goes into it.
• Student loan repayments – if applicable.

Because tax thresholds have been frozen, the average tax rate for minimum wage workers has increased. The LPC estimates that a single full-time worker (35 hours per week) on the NLW will see their weekly take-home pay rise by only £11.90, which is a 3.3% increase – less than the 4.1% headline rise in the hourly rate.

How Universal Credit changes the picture

If you receive Universal Credit (UC), the increase in your take-home pay could be larger. The Government is increasing the UC standard allowance by 6.2% – above the NLW rise. This means that NLW workers who claim UC will benefit from a greater boost to their net income. For example, a couple with two school-aged children where only one person works on the NLW will see their take-home pay rise by at least 4.2%, according to the LPC.

However, if you work more than about 14 hours per week on the NLW, you may earn too much to qualify for the UC standard allowance. The interaction between wages and benefits is complex, so it is worth using a benefits calculator to see your personal situation.

What about younger workers and apprentices?

The 18-20 rate rises by 8.5% to £10.85, which is now 85% of the NLW. The Government has a long-term aim to reduce and eventually eliminate the gap between the youth rate and the adult rate. For 16-17 year olds and apprentices, the rate goes up 6% to £8.00. These increases ensure that younger workers are not left behind, but their take-home pay will also be affected by tax and benefits in the same way.

Looking ahead: what might the minimum wage be in 2027?

The LPC has already provided indicative estimates for the 2027 NLW. Based on current wage forecasts, two-thirds of median hourly earnings for those aged 21 and over is projected to be in the range of £13.02 to £13.34, with a central estimate of £13.18. That would represent a further increase of 2.4% to 5.0% on the 2026 rate. However, these are projections and will depend on economic conditions.

How many jobs are affected?

The LPC estimates that around 1.7 million jobs (5.9% of all jobs) will be paid at or just above the NLW from April 2026. This is a slight fall from 1.76 million in 2025, partly because wage growth has been stronger than expected, pushing some jobs above the minimum. For the 18-20 age group, coverage is higher at 18.2% of jobs in that age band.

Practical tips for workers

• Check your age band – the rate you are entitled to depends on your age. If you are 21 or over, you should receive at least £12.71 per hour.
• Look at your payslip – compare your gross pay to the statutory rate. Your employer must pay you at least the minimum wage for your age.
• Use a take-home pay calculator – to see how much you will actually receive after deductions.
• If you receive benefits – understand how a pay rise affects your Universal Credit or other entitlements.

For more detailed information on pay rates and how they apply to different roles, visit our UK Minimum Wage page or explore our pay data section.

Final thoughts

So, is the minimum wage going up in 2026? Yes, and by a meaningful amount. But the headline rate is not the whole picture. Your take-home pay depends on your personal circumstances, including tax, benefits, and hours. The increase is designed to keep the NLW ahead of inflation and maintain its value relative to median earnings. Whether you are a full-time worker, a student, or an apprentice, it pays to understand the difference between the advertised salary and what actually lands in your bank account.