National Minimum Wage and Real Living Wage Increases

National Minimum Wage Increase Announced for 2026

The government has announced the following increases to the national minimum wage rates, effective 1st of April 2026.

• 21 and over – from £12.21 to £12.71 per hour
• 18-20 – from £10 to £10.85 per hour
• 16-17 and Apprentices – from £7.55 to £8 per hour

The Real Living Wage for 2026

The Living Wage Foundation has published the new Real Living Wage rates, which are set to be introduced across the UK and in London in 2026.

What is the Real Living Wage?
The RLW is a UK wage rate applicable to all employees aged 18 years or older, calculated based on the real cost of living.

This is a voluntary wage rate that is separate from the National Living Wage, which is the statutory government minimum wage rate required by all employers.

What are the benefits of the RLW?
There are plenty of reasons as to why employers might want to introduce the RLW into the workplace, including:

• Improving staff retention and recruitment prospects, which can lead to long-term cost savings;
• Helping to set you apart from your competitors in the industry.
• Increasing motivation and engagement of the workforce as they will feel valued and recognised; and
• Helping to secure more contracts and funding opportunities by being a Living Wage accredited employer.

What is the new RLW rate?
The Living Wage Foundation has released the new RLW rates for 2026, which are set to increase the rate of pay for nearly half a million workers.

The new rates are as follows:

• London: £14.80 per hour (currently set at £13.85 per hour)
• Across the UK: £13.45 per hour (currently set at £12.60 per hour)

These increases are nearly 7% from the previous RLW rates (6.9% for London and 6.7% across the UK).

When to expect the change?
It is expected that the increase to the RLW rates will be introduced for both London and the rest of the UK by 1st May 2026 at the latest, although this could well tie in with the introduction of the national minimum wage on 1st April 2026.

If you are an employer paying the Real Living Wage or are ready to commit to paying the Real Living Wage, visit the Living Wage Foundation to start your accreditation journey.

Ask us to review your pay and compliance before rates change. Contact our team today.