By Alicia Collinson
From 1 April 2026, UK employers must ensure they are paying the correct National Minimum Wage and National Living Wage rates.
Annual uplifts are a legal requirement; failure to apply them correctly can result in significant financial penalties, back pay liability and reputational damage.
This year’s increases apply across all age bands and apprentices, reflecting the Government’s continued focus on supporting lower paid workers.
What Is Changing from 1 April 2026?
Employers must apply the new statutory rates from 1 April 2026. This includes workers who become eligible for a higher rate because of age, apprenticeship status or changes in working arrangements.
The new hourly rates are:
- National Living Wage, age 21 and over – £12.71
- National Minimum Wage, age 18 to 20 – £10.85
- National Minimum Wage, age 16 to 17 – £8.00
- Apprentice rate – £8.00
- Accommodation offset – £11.10 per day
Payroll systems should be reviewed now to ensure increases are implemented correctly and on time.
Why This Matters
Minimum wage compliance is not optional.
The issue is that underpayments often arise unintentionally, particularly where:
- Workers move between age bands mid year
- Apprentices complete their first year or turn 19
- Annual uplifts are not applied consistently
- Salary sacrifice arrangements reduce take home pay below the legal threshold
HMRC enforcement action can result in:
- Back pay orders
- Financial penalties of up to 200 percent of arrears
- Public naming and reputational impact
The cost of getting it wrong is far greater than the cost of reviewing compliance.
Checklist: Workers Who May Move Wage Bands During the Year
It is not enough to review pay only in April. Employers must monitor eligibility changes throughout the year.
Age Related Changes
Ensure systems automatically increase pay from the worker’s birthday where they move into a higher age bracket, for example turning 18 or 21.
Apprentices
Review pay when an apprentice:
- Turns 19
- Completes the first year of their apprenticeship
At this point, they may become entitled to the age appropriate minimum wage rather than the apprentice rate.
Role or Hours Changes
If a worker’s role, responsibilities or hours change, review whether pay remains accurate, particularly where their salary is close to the minimum threshold.
Salary Sacrifice Arrangements
Check that deductions for benefits, uniforms or other arrangements do not reduce pay below the statutory minimum.
Accommodation Offset
Confirm that accommodation charges are applied correctly and updated in line with the new daily offset rate.
Ongoing Audits
Carry out periodic wage audits during the year, not just in April, to identify issues early and reduce risk.
What Employers Should Be Doing Now
- Review payroll systems and ensure April uplifts are correctly applied
- Identify the workers who are likely to move wage bands during the year
- Audit salary sacrifice and deduction arrangements
- Train managers and payroll teams on mid-year triggers
- Document your compliance checks
Proactive review now can prevent costly enforcement later.
Need Support?
If you would like help reviewing pay structures, auditing compliance, or updating contracts and policies in light of the April 2026 changes, email enquiries@thrivelaw.co.uk
