The statutory minimum pay rates for the UK have been revised. Here is what employers and workers need to know.
Current Rates (from 1 April 2025)
From 1 April 2025, the hourly minimum pay rates are:
- Aged 21 and over (National Living Wage): £12.21 per hour (up from £11.44)
- Aged 18–20: £10.00 per hour (up from £8.60)
- Aged 16–17 and apprentices under 19 or in first year of apprenticeship: £7.55 per hour (up from £6.40)
- Accommodation Offset (if employer provides accommodation): £10.66 per day, up from £9.99
These changes came into effect from the first full pay cycle after 1 April 2025, so many workers saw the increase in their May or June paychecks.
What’s Next: April 2026 Increases
Further increases are scheduled for 1 April 2026. The Low Pay Commission’s recommendations have been accepted by the government. The new rates will be:
- 21 and over (National Living Wage): £12.71 per hour, an increase of 50p
- 18–20 year olds: £10.85 per hour, up 85p
- 16–17 year olds and apprentices: £8.00 per hour, up 45p
These increases are part of the government’s ongoing plan to narrow the pay gap between younger and older adult workers.
What This Means for Employers and Employees
Employers should check payroll systems, particularly for staff approaching 21 years old or employing apprentices and younger workers. Ensure pay rates are updated for April 2026.
Employees aged 21 and over should now be earning at least £12.21 per hour, rising to £12.71 per hour in April 2026. Younger workers and apprentices should see the corresponding increases.
Employers providing accommodation should confirm that any offset does not reduce pay below the legal minimum.
The government has confirmed the latest hourly minimum pay rates for 2025 and announced the next increases for 2026. Employers must review payroll arrangements to ensure compliance, and employees should check that their pay reflects the new legal minimums.
Challenor Gardiner specialise in business law in the Oxford area. Get in touch with our expert team.
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