What Is the Minimum Wage in London? Age Bands and Eligibility Explained

What Is the Minimum Wage in London? Age Bands and Eligibility

If you are asking what is the minimum wage london, the short answer is that the statutory minimum wage rates set by the UK government apply equally across the whole country, including the capital. There is no separate London minimum wage. However, because the cost of living in London is higher, many employers advertise salaries above the legal minimum, especially in sectors such as hospitality, retail, and social care.

National Living Wage and National Minimum Wage Rates for 2026

From April 2026, the following hourly rates apply:

• National Living Wage (21 and over): £12.71 per hour
• National Minimum Wage (18–20): £10.85 per hour
• National Minimum Wage (under 18): £8.00 per hour
• Apprentice rate: £8.00 per hour (for apprentices under 19, or those aged 19+ in their first year)

These rates represent increases of between 4.1% and 8.5% on the previous year’s figures. The government expects the National Living Wage to stay ahead of inflation for the year ahead, providing a real-terms increase for low-paid workers.

Who Gets Which Rate?

Your age determines which minimum wage you are entitled to. The National Living Wage applies to workers aged 21 and over. Workers aged 18 to 20 receive the lower National Minimum Wage rate of £10.85. Those under 18 (but above school leaving age) are entitled to £8.00 per hour. Apprentices are also entitled to £8.00 per hour if they are under 19 or in the first year of their apprenticeship; after the first year, they must be paid the minimum wage for their age.

It is important to note that the age bands changed in April 2024, when the National Living Wage was extended to 21-year-olds (previously it applied only to those aged 23 and over). This means that a 21-year-old working in London is now entitled to the higher rate of £12.71, rather than the lower 18–20 rate.

How Does This Compare to Average Earnings?

According to the Office for National Statistics (ONS), median weekly earnings for full-time employees across the UK were £766.60 in April 2025. That works out at roughly £19.17 per hour for a 40-hour week. In London, median earnings are typically higher — the ONS reports that median full-time weekly pay in London was around £850 in 2025, reflecting the higher cost of living and concentration of higher-paying jobs.

However, many workers in London, particularly in retail, hospitality, and cleaning, are paid at or near the minimum wage. For a full-time worker on the National Living Wage (35 hours per week), weekly pay would be £444.85 before tax and National Insurance. After deductions, take-home pay would be lower, especially if the worker also receives Universal Credit or other benefits.

What Counts Towards the Minimum Wage?

When calculating whether you are being paid the minimum wage, your employer must include certain payments and exclude others. The following must be included:

• Income Tax and National Insurance contributions (these are deducted from your gross pay)
• Wage advances or loans
• Repayment of overpaid wages
• Things you paid for that are not needed for the job (e.g., meals)
• Accommodation provided by your employer above the offset rate (£11.10 per day or £77.70 per week)
• Penalty charges for misconduct

The following must not be included:

• Payments for the employer’s own use or benefit (e.g., travel to work costs)
• Things you bought for the job and were not refunded (e.g., tools, uniform, safety equipment)
• Tips, service charges, and cover charges
• Extra pay for working unsocial hours on a shift

If your employer provides accommodation, they can count up to £11.10 per day towards your minimum wage. Anything above that must be paid in addition to the minimum wage.

What If You Are Paid Below the Minimum Wage?

It is a criminal offence for an employer to pay below the correct minimum wage or to falsify payment records. If you discover you have been underpaid, your employer must pay any arrears immediately. You can use the government’s minimum wage calculator to check whether you are being paid correctly. If you believe you are being underpaid, you can raise a grievance with your employer or contact the Advisory, Conciliation and Arbitration Service (Acas) for advice.

Practical Tips for London Workers

• Check your age band: Make sure you are receiving the correct rate for your age. If you turn 21 during a pay period, your employer should apply the higher rate from that date.
• Look at your contract: Your contract should state your hourly rate. If it is below the statutory minimum, it is likely unlawful.
• Consider the cost of living: While the minimum wage is the same across the UK, the cost of living in London is significantly higher. If you are struggling to make ends meet, check whether you are eligible for benefits such as Universal Credit, housing benefit, or council tax reduction.
• Use our resources: For more detailed guidance on pay rates and what to do if you are underpaid, visit our UK Minimum Wage page or browse our pay guides for sector-specific advice.

Frequently Asked Questions

Is the minimum wage different in London compared to the rest of the UK? No. The statutory National Living Wage and National Minimum Wage rates are the same across the whole of the United Kingdom, including London. However, many employers in London pay above the minimum to reflect the higher cost of living, so advertised salaries are often higher.

What is the minimum wage for a 20-year-old working in London? A 20-year-old worker is entitled to the National Minimum Wage for 18–20 year olds, which is £10.85 per hour from April 2026. This applies regardless of whether they work in London or elsewhere in the UK.

Can my employer deduct money from my wages and still pay the minimum wage? Some deductions are allowed, such as income tax and National Insurance, but deductions for things like uniforms or tools that you need for the job cannot bring your pay below the minimum wage. Tips and service charges also cannot be counted towards the minimum wage. If your employer provides accommodation, they can offset up to £11.10 per day (£77.70 per week) against your pay.

Final Thoughts

Understanding what is the minimum wage london is straightforward: the same statutory rates apply as in the rest of the UK. But because London’s labour market and cost of living are different, it pays to research typical salaries in your sector and to know your rights. Always check your payslip and contract, and if something seems wrong, speak to your employer or seek advice from Acas or Citizens Advice.

For more data on average pay by region and occupation, see our pay data section. And if you are an employer, make sure you are complying with the law — underpaying staff can lead to fines and reputational damage.