When Does the Minimum Wage Go Up? Key Dates, Rates and Common Myths

When Does the Minimum Wage Go Up? The Simple Answer

If you’re asking “when does the minimum wage go up”, the answer is straightforward: every 1 April. The UK’s National Minimum Wage (NMW) and National Living Wage (NLW) rates are reviewed annually by the Low Pay Commission and take effect from the start of the new tax year. The most recent increase happened on 1 April 2026, and the next will follow on 1 April 2027. Knowing this date is crucial for budgeting, especially if you’re on a low hourly rate or employ staff.

The April 2026 Rates at a Glance

From April 2026, the hourly rates are:

• National Living Wage (21 and over): £12.71 (up from £12.21)
• 18–20 year old rate: £10.85 (up from £10.00)
• Under 18 rate: £8.00 (up from £7.55)
• Apprentice rate: £8.00 (up from £7.55)

These figures come directly from GOV.UK National Living Wage rates and the Low Pay Commission’s 2026 report. The NLW rose by 4.1%, while the 18–20 rate saw a larger 8.5% increase – part of the Government’s plan to narrow the gap between age bands.

Common Myth: “The National Living Wage Only Applies to Over-25s”

This is one of the most persistent mistakes. Until April 2024, the NLW was indeed for workers aged 25 and over. But the age threshold was lowered to 21 from April 2024, and it remains at 21 for the 2026 rates. If you’re 21 or 22, you are entitled to the full NLW of £12.71, not the lower 18–20 rate. Always check your age band – employers sometimes get this wrong.

Myth: “The Minimum Wage Is a ‘Living Wage’ – It’s Enough to Live On”

The National Living Wage is a legal minimum, not a calculation of what you actually need to live. The real Living Wage (calculated by the Living Wage Foundation) is higher and voluntary. For 2025/26, the real Living Wage outside London is £12.60, and in London £13.85 – but these are not legally enforceable. The NLW is the floor; many employers pay more, but they are not required to.

Gross Pay vs Take-Home Pay: What You Actually Get

A common mistake is to assume your gross hourly rate equals your take-home pay. In reality, deductions for Income Tax, National Insurance (NI), pension contributions, and student loan repayments reduce what lands in your bank account.

Using the NLW of £12.71 for a 37.5-hour week:

• Gross annual pay: ~£24,785
• Income Tax: You have a Personal Allowance of £12,570, so you pay 20% on the remaining ~£12,215 = ~£2,443
• Employee NI: 8% on earnings above £12,570 (up to £50,270) = ~£977
• Take-home (no other deductions): ~£21,365 per year, or about £1,780 per month

If you contribute 5% to a workplace pension (auto-enrolment), your take-home drops further. If you have a student loan (Plan 2 or Plan 5), an additional 9% deduction applies above the repayment threshold.

Myth: “The Minimum Wage Increase Automatically Boosts My Take-Home Pay by 4.1%”

Not quite. The Low Pay Commission’s 2026 report explains that frozen tax thresholds mean your average tax rate rises slightly as your earnings increase. For a single full-time worker (35 hours), the increase in weekly take-home pay is about 3.3%, not 4.1%. However, if you receive Universal Credit, the 6.2% increase to the standard allowance (above inflation) can more than offset this, giving a larger net gain.

Myth: “Apprentices Always Get the Apprentice Rate”

Only apprentices under 19, or those in the first year of their apprenticeship, are entitled to the apprentice rate (£8.00 from April 2026). After the first year, if you are 19 or over, you must be paid the age-related minimum wage. So a 22-year-old in their second year should get the NLW of £12.71, not £8.00.

What About Scotland?

If you live and work in Scotland, your Income Tax bands are different. The Scottish Government sets its own rates, which have a starter rate (19%), basic rate (20%), intermediate rate (21%), and higher rates. This can affect your take-home pay compared to the rest of the UK. Always check your tax code and use a Scottish-specific calculator.

How to Check You’re Being Paid Correctly

• Use the HMRC minimum wage calculator on GOV.UK to check if your employer is paying the right rate.
• Look at your payslip: your hourly rate should match the band for your age.
• If you think you’re being underpaid, contact Acas for free advice.

Planning Ahead: The 2027 Rate

The Low Pay Commission’s remit for 2027 states that the NLW should remain at two-thirds of median hourly earnings. Based on current forecasts, the 2027 rate could be between £13.02 and £13.34, with a central estimate of £13.18. That’s a potential 3.7% increase on the 2026 rate. So the answer to “when does the minimum wage go up” next is 1 April 2027, and it will likely be higher.

Final Thoughts

Understanding when the minimum wage goes up and how it affects your actual pay is essential for financial planning. Don’t fall for the myths: check your age band, remember that gross and net are different, and factor in deductions like pension and student loan. For a personalised estimate of your take-home pay, use our take-home calculator or browse our salary articles for more guidance.

Remember: the minimum wage is a floor, not a target. If you’re skilled or in a high-demand sector, you may be able to negotiate more. But knowing your legal minimum is the first step to ensuring you’re paid fairly.