Image source, Getty Images
ByJennifer Clarke and Faarea MasudBBC News
Updated 2 hours ago
The official minimum rates of pay will rise for 2.3 million workers on 1 April.
The rate for workers aged 21 and over is called the National Living Wage, while those aged 18 to 20 are paid the National Minimum Wage. They will both go up by 3.9% next year.
The rates apply across the UK.
What is the National Living Wage rate?
From 1 April 2027, workers over 21 on the National Living Wage will be paid £13.21p per hour, up 50p from the current £12.71 an hour.
For someone working full time (35 hours a week), that means an increase of £910 to their gross annual earnings, according to the Treasury.
What is the National Minimum Wage rate?
The rate for 18 to 20-year-olds will rise to £11.27 an hour from 1 April, up from £10.85. For someone working full time, that means an increase of £760 to their gross annual earnings.
The minimum wage for 16 and 17-year-olds is also rising by 3.9%, increasing from £8 an hour to £8.31.
However, these figures mean, this time around, there's no progress on Labour's manifesto promise to narrow the gap in minimum wages between older and younger workers.
What is the apprentice rate and how much is it worth?
Image source, Getty Images
There are different rates of pay for apprentices, external depending on their age and what stage of apprenticeship they are in.
Apprentices aged 16 to 18 are entitled to the National Minimum Wage rate for that age group. This is currently £8 an hour but will rise by 3.9% to £8.31 in April.
Those aged 19, or in the first year of their apprenticeship, are paid the same amount.
But those over 19 - or who have already completed their first year - are entitled to the appropriate National Minimum Wage or National Living Wage rate for their age.
Who doesn't qualify for the National Minimum Wage and National Living Wage?
Some workers do not qualify for either the National Minimum Wage or the National Living Wage.
This includes the self-employed, company directors, volunteers, members of the armed forces and prisoners.
People with disabilities or in long-term unemployment who take part in government work programmes are paid fixed amounts at different stages of the scheme.
These are less than the equivalent National Minimum or Living rate.
Do employers have to pay the National Minimum Wage and National Living Wage?
Image source, Getty Images
What happens if employers don't pay the right wage?
What is the Real Living Wage and how much is it?
The Real Living Wage, external is an unofficial hourly rate of pay which is overseen by the Living Wage Foundation charity, who say it is set at a rate to meet the cost of living.
It increases every October.
Some firms choose to pay the Real Living Wage, but it is not mandatory.
According to the charity almost 500,000 employees working for nearly 17,000 firms receive the voluntary rate of pay.
In October 2026, the foundation said the UK rate would increase by 4.8% to £14.10 an hour, while the London Living Wage for workers in the capital would go up by 4.4% to £15.45.
The Living Wage Foundation says the rate is worth over £2,700 more per year than the legal minimum wage in the UK, and over £5,300 more in London.
Source: BBC Politics · Jennifer Clarke, Faarea Masud
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