The minimum wage for 2026/27 is £12.71 an hour for workers aged 21 and over, £10.85 for 18 to 20-year-olds, and £8.00 for 16 to 17-year-olds and apprentices, from 1 April 2026.
Employers must apply the right rate for each worker’s age and apprenticeship status.
Then check that deductions, unpaid working time and salary sacrifice don’t push effective hourly pay below the legal minimum.
What Are the Minimum Wage Rates for 2026/27?
| Worker category | Hourly rate | Increase |
|---|---|---|
| Age 21 and over | £12.71 | 4.1% |
| Age 18–20 | £10.85 | 8.5% |
| Age 16–17 | £8.00 | 6.0% |
| Apprentice rate | £8.00 | 6.0% |
| Accommodation offset | £11.10 a day | 4.1% |
These are the official rates in force for 2026/27. Check the live GOV.UK minimum wage rates whenever a worker changes age or circumstances.
Who Gets Each Rate?
Workers aged 21 and over receive the National Living Wage. The lower bands apply to workers aged 18–20 and 16–17. A worker must be at least school-leaving age to qualify for the National Minimum Wage.
Rates are based on age during the pay reference period, so payroll records should flag upcoming 18th and 21st birthdays.
When Does the Apprentice Rate Apply?
The £8.00 apprentice rate applies only where the worker is under 19, or is 19 or over and still in the first year of a recognised apprenticeship.
A 19-year-old who has finished year one must get at least the normal rate for their age. A 21-year-old apprentice beyond year one must get £12.71.
When Do the New Rates Take Effect?
The rates changed on 1 April 2026, not 6 April. The new amount applies from the first pay reference period beginning on or after 1 April. Employers should not wait until the next tax month if the worker’s pay period begins sooner.
What Causes Accidental Underpayment?
- unpaid opening, closing, training, travel or security-check time that counts as working time
- deductions for uniforms, tools or other costs connected with the job
- salary sacrifice arrangements that reduce minimum-wage pay
- using scheduled hours rather than actual hours worked
- leaving an apprentice on £8.00 after they cease to qualify
- missing a worker’s 18th or 21st birthday
How Does the Accommodation Offset Work?
Employer-provided accommodation is the only benefit that can count towards minimum-wage pay. The 2026/27 offset is £11.10 a day. Charging more than the offset may reduce the pay counted for minimum-wage purposes, even where the accommodation is genuinely valuable.
What Should Employers Check in Payroll?
- update payroll software before the first affected pay period
- review every employee’s age and apprentice start date
- recalculate salaried workers’ effective hourly rate
- audit deductions and salary sacrifice arrangements
- budget for employer National Insurance and pension costs as well as wages
- retain clear pay and time records for HMRC checks
What Else Should You Budget For?
The wage rate is only one part of the cost of employing someone. Employer National Insurance, workplace pension contributions, holiday pay and statutory payments must be budgeted too.
Eligible employers may offset some NIC through the £10,500 Employment Allowance for 2026/27.
Our managed payroll service keeps rates, RTI reports and pension deductions up to date. You can also read our complete payroll guide for small businesses.
We support employers from our Blackburn office and across Lancashire, including businesses seeking an accountant in Burnley or accountant in Chorley.
How Do the 2026/27 Rates Work in Practice?
Illustrative examples: these are made-up workers to show how the rates apply, not real clients.
A 22-year-old employee
A worker aged 22 must receive at least £12.71 for every hour counted for minimum-wage purposes. A 37.5-hour week at the legal minimum is £476.63 before deductions, subject to rounding within payroll and the pay reference period.
A 19-year-old apprentice
If the apprentice is still in the first year, £8.00 can apply. Once that first year is completed, the minimum becomes £10.85 because the worker falls into the 18–20 band. Payroll should record both the date of birth and apprenticeship start date.
A worker turning 21
The worker moves from £10.85 to £12.71 from the first pay reference period beginning on or after the 21st birthday. A diary alert helps prevent the lower rate continuing by mistake.
What Pay Counts Towards the Minimum Wage?
Minimum-wage pay is not always the same as gross pay on a payslip. Basic pay, some incentive payments and certain bonuses can count.
Tips paid directly by customers, most benefits in kind and the premium part of overtime generally do not. Employer deductions connected with the job can reduce the amount that counts.
This is why a salary above the headline annual equivalent can still create an underpayment: unpaid extra hours or a uniform deduction may lower the effective hourly rate.
Why Do Working-Time Records Matter?
Record time spent opening and closing premises, compulsory training, required travel between assignments and other work duties.
Relying only on contracted hours can hide an underpayment where staff regularly start early, finish late or do mandatory tasks outside their shifts.
What Happens If You Underpay?
HMRC can require repayment of arrears, issue a financial penalty and name employers publicly. An accidental payroll error is still an underpayment.
Regular checks of birthdays, apprentice milestones, deductions and actual hours are a practical compliance control, not an optional extra.
Frequently Asked Questions
What is the National Living Wage in 2026/27?
The National Living Wage is £12.71 an hour for workers aged 21 and over from 1 April 2026.
What is the minimum wage for an 18-year-old in 2026/27?
Workers aged 18 to 20 must receive at least £10.85 an hour from 1 April 2026, unless a valid apprentice rate applies.
What is the apprentice minimum wage in 2026/27?
The apprentice rate is £8.00 an hour. It applies to apprentices under 19 and those aged 19 or over who are in the first year of their apprenticeship.
What is the accommodation offset in 2026/27?
The maximum accommodation offset is £11.10 per day from 1 April 2026. Charges above the offset can reduce pay for minimum-wage purposes.
Do the new rates apply from 6 April 2026?
No. Minimum wage rates changed on 1 April 2026. They apply from the first pay reference period beginning on or after that date.
The Bottom Line
The minimum wage for 2026/27 is £12.71 for workers aged 21 and over, £10.85 for 18 to 20-year-olds and £8.00 for 16 to 17-year-olds and apprentices on the apprentice rate.
Most underpayments come from missed birthdays, apprentices left on the wrong rate, deductions and unrecorded hours. Check them every pay period, not once a year.
If you’d like us to review your worker rates and payroll, book a free consultation.
Tax figures checked by Rehan Razzaq FCCA on 8 October 2026 for the 2026/27 tax year.
This article is general guidance for UK employers and taxpayers and does not constitute personal tax, payroll or legal advice. Rules and individual circumstances vary — confirm your position before acting.
WRITTEN BY
Rehan Razzaq, FCCA
Founder, R&R Chartered Certified Accountants
ACCA Chartered Certified and Xero Certified Advisor, helping Blackburn businesses with accounts, tax and payroll since 2021.
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