Comparison · Minimum Wage · 2026
18-20 Minimum Wage Rate vs National Living Wage 2026: £10.85 vs £12.71
From 1 April 2026, workers aged 18-20 are entitled to at least £10.85 an hour, while workers 21 and over get the National Living Wage of £12.71. This guide compares the two rates, the size of the pay gap, and the government's plan to narrow it over time.
TL;DR -- 2026 Minimum Wage Age Bands
- • National Living Wage (21+): £12.71/hour (+4.1%)
- • 18-20 Year Old Rate: £10.85/hour (+8.5%)
- • 16-17 Year Old Rate: £8.00/hour (+6%)
- • Apprentice Rate: £8.00/hour (+6%)
- • Accommodation offset: £11.10/day
18-20 Rate vs National Living Wage: Head-to-Head
| Feature | 18-20 Year Old Rate | National Living Wage (21+) |
|---|---|---|
| Hourly rate (from 1 April 2026) | £10.85 | £12.71 |
| Rise vs 2025/26 | +8.5% | +4.1% |
| Applies to | Workers aged 18, 19 or 20 | Workers aged 21 and over |
| Weekly pay gap (37.5 hrs) | £69.75 less on the 18-20 rate | |
| Direction of travel | Gap narrowing over successive years, per LPC remit | |
Worked Example: Annual Pay Difference
Two workers each do a standard 37.5-hour week, 52 weeks a year. One is 20 years old and on the 18-20 rate; the other has just turned 21 and moved to the National Living Wage.
| Calculation | 18-20 Rate (£10.85) | National Living Wage (£12.71) |
|---|---|---|
| Weekly pay (37.5 hrs) | £406.88 | £476.63 |
| Annual pay (x 52) | £21,157.50 | £24,784.50 |
| Annual difference | £3,627.00 more per year on the National Living Wage | |
For a minimum-wage worker doing identical hours in an identical role, simply turning 21 unlocks over £3,600 a year in legally mandated minimum pay -- a significant jump that employers with 18-20 year old staff need to budget for as workers age into the higher band.
Frequently Asked Questions
Frequently Asked Questions
What is the 18-20 minimum wage rate for 2026?
From 1 April 2026, workers aged 18 to 20 are entitled to at least £10.85 per hour -- up 8.5% from 2025/26, part of the government's move to narrow the gap with the National Living Wage.
What is the National Living Wage for 2026?
The National Living Wage for workers aged 21 and over is £12.71 per hour from 1 April 2026, a 4.1% rise on 2025/26 -- the highest rate in the age-banded minimum wage system.
How big is the pay gap between the two rates?
The gap is £1.86/hour (£12.71 minus £10.85). For a 37.5-hour week that is about £69.75/week or roughly £3,627/year, purely from crossing the age-21 threshold.
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Is the government merging the 18-20 rate with the National Living Wage?
The Low Pay Commission has been asked to work towards a single adult rate over time. The 8.5% rise in the 18-20 rate (vs 4.1% for the National Living Wage) in April 2026 reflects this direction, but no confirmed merger date exists -- check gov.uk and current LPC recommendations for the latest position.
What is the rate for 16-17 year olds and apprentices?
Both the 16-17 Year Old Rate and the Apprentice Rate are £8.00/hour from 1 April 2026, a 6% rise. The Apprentice Rate applies to apprentices under 19, or 19+ in the first year of their apprenticeship.
Do employers pay different NI depending on a worker's age band?
Employer secondary NI (15% above the £5,000 threshold) applies the same regardless of minimum wage age band, though a separate 0% employer NI rate can apply for employees under 21 (and some apprentices under 25) up to the upper secondary threshold.
Can an employer pay someone under 21 the National Living Wage anyway?
Yes -- the age-banded rates are legal minimums, not caps. Many employers pay the National Living Wage or more to all staff regardless of age as standard company policy.
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Disclaimer: This comparison is for general information based on the National Living Wage and minimum wage age-band rates effective from 1 April 2026, as recommended by the Low Pay Commission. Rates and the government's age-band merger policy may change -- check gov.uk for the latest figures.