Pay Increase for Millions of Workers Starts This Week

A significant change is happening in the world of work, with the minimum wage going up from the beginning of April 2026.

This change will bring a welcome pay boost for millions of workers, as the new rates come into effect next week.

By law, employers must pay their workers a certain minimum amount per hour, known as the minimum wage, which varies depending on the worker's age.

For people aged 21 and over, the minimum wage is increasing from £12.21 to £12.71 per hour.

This means that someone working 40 hours a week on the minimum wage can expect their annual salary to rise by about £1,040, from £25,397 to £26,437.

Younger workers will also see their pay increase, with those aged 18-20 getting a rise from £10 to £10.85 per hour, and under-18s and apprentices seeing their minimum wage go up from £7.55 to £8 per hour.

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It's worth noting that many employers choose to pay their workers more than the minimum wage, and these rates are simply the minimum that employers are required to pay by law.

Some companies also pay the Real Living Wage, which is a higher, voluntary rate that is based on the cost of living.

The Real Living Wage is also going up, to £13.45 per hour outside London and £14.80 per hour inside London, and employers have until May 2026 to implement these new rates.

If you think you might be being paid less than the minimum wage, the first step is to check your payslip to see if you're being paid the correct amount.

If you're not being paid the minimum wage, you should talk to your employer and give them the chance to put things right.

If talking to your employer doesn't resolve the issue, you can get in touch with the Advisory, Conciliation and Arbitration Service (ACAS) for advice on what to do next.

As a last resort, you may need to take your employer to a tribunal, but it's a good idea to get advice from ACAS or Citizens Advice first to understand the costs involved.

Another option is to report your employer to HMRC, who can investigate and fine them if they're found to have broken the law.

In some cases, HMRC may even take your employer to court on your behalf, but you should be aware that you can't pursue the same issue through two different legal processes.

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