In a development that will surprise absolutely no one who has tried to buy groceries lately, the official minimum rates of pay will rise for 2.3 million workers on 1 April. The rate for workers aged 21 and over - known as the National Living Wage - and the National Minimum Wage for 18 to 20-year-olds will both go up by 3.9% next year.

From 1 April 2027, workers over 21 on the National Living Wage will be paid £13.21 per hour, up 50p from the current £12.71. For someone working full time at 35 hours a week, that means an increase of £910 to their gross annual earnings, according to the Treasury - a sum that will almost certainly be absorbed by the first three trips to the supermarket.

The rate for 18 to 20-year-olds will rise to £11.27 an hour from 1 April, up from £10.85. The minimum wage for 16 and 17-year-olds is also rising by 3.9%, increasing from £8 an hour to £8.31. So the young are getting a raise, just not a particularly dramatic one.

However, these figures mean there's no progress this time around on Labour's manifesto promise to narrow the gap in minimum wages between older and younger workers. A promise, it seems, that has been politely shelved alongside several others.

Apprentices have their own labyrinthine pay structure. Apprentices aged 16 to 18 are entitled to the National Minimum Wage rate for that age group - currently £8 an hour, rising 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. Because nothing says 'welcome to the workforce' like a flow chart.

Some workers do not qualify for either rate at all. This includes the self-employed, company directors, volunteers, members of the armed forces and prisoners - a list that raises several questions about the armed forces that we'll leave for another day. 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, and these are less than the equivalent National Minimum or Living rate.

Yes, it is a criminal offence for employers not to pay the correct National Minimum and Living Wages to eligible employees. The rates apply even if workers are not paid by the hour. If you think you are being paid the wrong amount, you can complain via the HMRC website or get advice from workplace experts Acas. Any employer not paying the correct amount can be penalised by HMRC.

In March 2026, the government said that 389 employers had been fined around £12.6m for failing to pay staff properly. They must also repay the missing £7.3m to the around 60,000 workers who were underpaid. Firms named included the nursery chain Busy Bees, Norwich City Football Club, Hays Travel and Costa Coffee - a lineup that suggests underpaying staff is a surprisingly popular pastime across multiple sectors.

Separately, the Real Living Wage is an unofficial hourly rate overseen by the Living Wage Foundation charity, which says it is set at a rate to meet the cost of living. Some firms choose to pay it, but it is not mandatory. According to the charity, almost 500,000 employees working for nearly 17,000 firms receive the voluntary rate.

In October 2026, the foundation said the UK rate would increase by 4.8% to £14.10 an hour, while the London Living Wage 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. Which is a polite way of saying the legal minimum is, by the charity's calculations, not quite enough to live on.