What Is Minimum Wage Going Up To in 2026? New Rates and Take-Home Pay Explained

Understanding the New Minimum Wage Rates from April 2026

If you're wondering what is minimum wage going up to in the coming year, the answer is clear: from April 2026, all statutory minimum wage rates increase. The National Living Wage for workers aged 21 and over rises to £12.71 per hour, the National Minimum Wage for 18-20 year olds goes up to £10.85, and the rate for under-18s and apprentices becomes £8.00 per hour. These changes follow recommendations from the Low Pay Commission and were accepted by the government, as confirmed by GOV.UK guidance.

What Are the New Statutory Rates?

The table below summarises the new hourly rates that will apply from 1 April 2026:

• National Living Wage (21 and over): £12.71 per hour (up 50p, a 4.1% increase)
• 18-20 Year Old Rate: £10.85 per hour (up 85p, an 8.5% increase)
• 16-17 Year Old Rate: £8.00 per hour (up 45p, a 6% increase)
• Apprentice Rate: £8.00 per hour (up 45p, a 6% increase)
• Accommodation Offset: £11.10 per day (up 44p, a 4.1% increase)

These figures come directly from the government's announcements and Low Pay Commission reports. The increases are designed to keep the National Living Wage at two-thirds of median earnings and to make progress towards extending the higher rate to younger workers.

Who Qualifies for Each Rate?

It's important to know which rate applies to you. The National Living Wage is for workers aged 21 and over. Workers aged 18 to 20 receive the lower rate of £10.85. Those under 18 and apprentices (if under 19 or in their first year of apprenticeship) get £8.00. Once an apprentice turns 19 and has completed their first year, they become entitled to the rate for their age. For example, a 21-year-old apprentice in their first year still receives the apprentice rate of £8.00, but after that first year they move to the National Living Wage of £12.71. GOV.UK guidance explains these rules in detail.

Advertised Salary vs Take-Home Pay

When you see a job advertised at the National Living Wage of £12.71 per hour, that is the gross hourly rate before any deductions. Your actual take-home pay will be lower after income tax, National Insurance contributions, and possibly pension contributions or student loan repayments. For instance, a full-time worker on 37.5 hours per week at £12.71 would have a gross annual salary of approximately £24,800. After standard deductions, the net monthly pay might be around £1,700, depending on your tax code and other factors. Our pay guides offer more detail on typical deductions and how to estimate your take-home pay.

It's also worth remembering that the statutory minimum is just that – a floor. Many employers pay above the minimum, especially in sectors with labour shortages or for skilled roles. When comparing job offers, look at the total compensation package, including pension contributions, holiday pay, and any benefits like health insurance or travel allowances. Use our pay data to see typical earnings in your sector and region.

Accommodation Offset

If your employer provides accommodation, they can deduct up to £11.10 per day from your wages for this benefit. This is known as the accommodation offset and is separate from your hourly wage. It means your take-home pay could be reduced by this amount if you live in employer-provided housing. The offset also increased in April 2026, as noted in the Low Pay Commission's report. Always check your contract to see if accommodation is provided and how it affects your net pay.

Comparison with Voluntary Living Wage

The National Living Wage is a legal minimum that all employers must pay to eligible workers. Some employers choose to pay the UK Living Wage or London Living Wage, which are voluntary benchmarks calculated by the Living Wage Foundation. These rates are higher and based on the actual cost of living. For 2025-26, the UK Living Wage is £12.60 per hour and the London Living Wage is £13.85 per hour. While the National Living Wage is catching up, the voluntary rates remain a target for employers committed to paying a truly living wage.

What This Means for Job Seekers

If you're searching for work, knowing what is minimum wage going up to helps you evaluate job offers. Remember that the advertised hourly rate is not what you'll take home. Use online calculators to estimate your net pay after deductions. Also consider the number of hours offered – some jobs may be part-time or zero-hours, which affects your total earnings. The UK Minimum Wage page on our site provides a quick reference to current rates and links to official calculators.

Finally, if you believe you are not being paid the correct minimum wage, you can check using the government's minimum wage calculator or contact Acas for advice. Employers who fail to pay the correct rate can face penalties and back-pay orders.

Frequently Asked Questions

What is the new National Living Wage from April 2026? From April 2026, the National Living Wage for workers aged 21 and over is £12.71 per hour. This is a statutory minimum that employers must pay, unless the worker is an apprentice in their first year or under 19.

How does take-home pay differ from the advertised hourly rate? The advertised hourly rate is the gross wage before deductions. Your take-home pay will be lower after income tax, National Insurance, and any pension contributions or student loan repayments are taken off. For example, a full-time worker on the National Living Wage might see around 20% of their gross pay deducted, depending on their tax code and other factors.

What is the accommodation offset and how does it affect my pay? If your employer provides accommodation, they can deduct up to £11.10 per day from your wages for this benefit. This is known as the accommodation offset and is separate from your hourly wage. It means your take-home pay could be reduced by this amount if you live in employer-provided housing.