What is the National Living Wage for 2026/27?

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The National Living Wage and National Minimum Wage rates are reviewed annually by the Low Pay Commission and updated each April, and the 2026/27 rates represent a continued above-inflation increase for the lowest-paid workers. **The 2026/27 rates by age band** From 1 April 2026: National Living Wage (age 21+) is £12.71 an hour, up 4.1% from the previous rate; the 18-20 development rate is £10.85, up 8.5%, continuing the government's stated ambition to narrow the gap between this band and the full adult rate; the 16-17 and apprentice rate is £8.00, up 6%. **Why the 18-20 rate is rising faster** The larger percentage increase for the 18-20 band reflects an ongoing policy direction to eventually align this rate more closely with the full National Living Wage, reducing the pay gap between younger adult workers and those 21 and over -- this trend has continued across several recent years' Budget announcements. **The accommodation offset** If an employer provides accommodation to a worker, they can only count a maximum daily offset (£11.10 per day for 2026/27) against the wage calculation -- charging more than this for accommodation without it counting toward wage calculations, or without the balance still meeting minimum wage requirements after the offset, would breach minimum wage law. **Who must be paid at least these rates** Almost all workers in the UK are entitled to at least the National Minimum/Living Wage, including full-time, part-time, casual, and agency workers -- there are limited exceptions, such as genuinely self-employed people, some apprentices in their first year (paid the separate apprentice rate), and certain other specific categories. **Penalties for underpayment** Employers who fail to pay the correct minimum wage face financial penalties (up to 200% of the underpayment, capped per worker), can be publicly named by the government, and are required to repay arrears to affected workers -- HMRC actively enforces minimum wage compliance through investigations. **Worked example** A 22-year-old working 35 hours a week at exactly the National Living Wage earns £12.71 × 35 = £444.85 a week, or roughly £23,132 a year before tax (assuming consistent hours across 52 weeks) -- an increase of about £913 a year compared with the prior rate. **Real Living Wage vs National Living Wage** Do not confuse the government's statutory National Living Wage with the voluntary, independently calculated "Real Living Wage" set by the Living Wage Foundation, which is typically higher and paid by employers who choose to sign up, rather than being a legal minimum. **Practical tip** If you believe you are being paid below the correct minimum wage rate for your age band, check your payslip against the current rates and raise it with your employer first -- if unresolved, HMRC's minimum wage complaints service can investigate on your behalf, and complaints can be made anonymously.

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