NMW and other Rate Increases
The April Pay Rise: What You Need to Know
With spring just around the corner, many workers across the UK are looking forward to more than just better weather. Starting 1st April 2026, significant changes to the legal minimum wage are coming into effect.
Whether you’re an employer planning your budget or an employee checking your next payslip, here is the breakdown of the new rates and how they differ from the “Real Living Wage.”
- The Legal Minimums (National Living & Minimum Wage)
The government-mandated rates—officially known as the National Living Wage (for those 21+) and the National Minimum Wage (for younger workers)—are seeing a healthy boost. The government’s goal is to eventually align these rates into a single “adult” wage.
| Category | Current Rate | New Rate (from 1 April 2026) |
| Aged 21 and over (National Living Wage) | £12.21 | £12.71 |
| Aged 18 to 20 | £10.00 | £10.85 |
| Under 18 | £7.55 | £8.00 |
| Apprentice | £7.55 | £8.00 |
Note: The “Apprentice Rate” applies if you are under 19, or 19+ and in the first year of your apprenticeship.
- What about the “Real Living Wage”?
You might hear another figure mentioned: the Real Living Wage. It’s easy to get these confused, but there’s a key difference:
- National Living Wage (NLW): This is the legal minimum. All employers must pay this by law.
- Real Living Wage (RLW): This is a voluntary rate set by the Living Wage Foundation. It is calculated based on the actual cost of living (basket of goods, energy, rent).
For 2025–26, the Real Living Wage has been set at £13.45 across the UK and £14.80 in London. While many employers have already moved to these rates, those accredited with the Foundation have until 1st May 2026 to implement them.
- Why the big jump for 18–20-year-olds?
You’ll notice the 18–20 age group is receiving the largest percentage increase (8.5%). This is part of a deliberate move to close the “age gap” in pay. The government has signalled that in future years, they want the full National Living Wage to apply to everyone aged 18 and over, rather than just those 21 and older.
The Bottom Line
If you are aged 21 or over and working a standard 37.5-hour week, this April’s increase to £12.71 represents a gross annual pay rise of roughly £975.
Check your contracts and payslips this April to ensure you’re being paid the correct new rate. If you’re an employer, now is the time to update your payroll systems to avoid a compliance headache!