Almost 400 companies have been ordered to repay over £7.3 million to approximately 60,000 workers who received less than the legal minimum wage. This crackdown highlights the government’s commitment to enforcing fair pay across the UK workforce.
National Living Wage to Rise in April 2026
The National Living Wage currently applies to workers aged 21 and over, with rates set to increase in April 2026. As of April 2025, the minimum hourly wage for this group stands at £12.21, rising to £12.71 next year. For full-time employees working 37.5 hours weekly, this translates to an annual salary of £24,784.50, a boost of nearly £900.
Understanding the National Minimum Wage for Younger Workers
Workers aged 18 to 20 are paid the National Minimum Wage, which increased sharply by 16% to £10 per hour in April 2025. This will climb by 8.5% to £10.85 in April 2026, adding around £1,500 annually for full-time employees. The government plans to unify this rate with the National Living Wage for all adults eventually.
Younger workers aged 16 and 17 currently earn £7.55 per hour. Their rate will rise by 6% to £8 an hour in April 2026, ensuring gradual improvements for the youngest workers entering the labor market.
Apprentice Pay Rates Explained
Apprentices receive varying rates depending on their age and apprenticeship stage. Those aged 16 to 18, and apprentices in their first year who are 19 or older, earn the same minimum as their age group—currently £7.55, rising to £8 next April. Apprentices over 19 who have completed their first year qualify for the standard National Minimum or Living Wage for their age bracket.
Who Is Excluded From Minimum Wage Protections?
Certain groups do not qualify for either the National Minimum or Living Wage. This exclusion applies to the self-employed, company directors, volunteers, armed forces personnel, and prisoners. Additionally, individuals with disabilities or long-term unemployed participants in government programs receive fixed payments below the minimum wage.
Employer Obligations and Consequences for Non-Compliance
Employers must pay the correct minimum wage to all eligible employees, regardless of whether they are paid hourly. Failure to comply is a criminal offence. If employees suspect underpayment, they can file complaints with HM Revenue and Customs (HMRC) or seek guidance from workplace advisory service Acas.
In March 2026, HMRC revealed that 389 employers faced fines totaling £12.6 million for wage violations, in addition to repaying £7.3 million in back pay. Notable offenders included Busy Bees Nursery, Norwich City Football Club, Hays Travel, and Costa Coffee.
The Real Living Wage: A Voluntary Benchmark
The Real Living Wage sets an unofficial but widely respected hourly pay rate overseen by the Living Wage Foundation. It targets UK workers aged 18 and over and is voluntarily adopted by employers. Since October 2025, London workers have earned a minimum of £14.80 per hour—the London Living Wage—up 5.3%. Elsewhere in the UK, the rate rose 6.7% to £13.45.
The Living Wage Foundation reports that this rate exceeds the legal minimum by £2,418 annually across the UK and by £5,050 in London. Over 16,500 firms employ nearly half a million workers at this higher voluntary wage, promoting fairer pay standards beyond statutory requirements.
