What is the National Living Wage in 2026?
The National Living Wage applies to workers aged 21 and over. Rates are set each April by the government following Low Pay Commission recommendations. The April 2025 rate was £12.71/hour — check gov.uk or your ComplianceAlert dashboard for the confirmed April 2026 figure.
Full answer
The National Living Wage (NLW) applies to all workers aged 21 and over. It's the legal minimum — paying below it is a criminal offence and can result in fines of up to 200% of the underpayment plus public naming.
- Age 21 and over (NLW): £12.71/hour
- Age 18–20: £10.85/hour
- Age 16–17 and apprentices: £8.00/hour
April 2026 rates: The government announces new rates in the autumn budget following Low Pay Commission recommendations. Check ComplianceAlert for an alert the moment the 2026 rates are confirmed — we send a notification to all subscribers before the April change date.
- Deducting uniform costs that bring pay below NMW — this is illegal
- Not updating pay for workers who turn 18, 21 or finish their apprenticeship — their rate automatically changes on their birthday
- Forgetting to include workers on zero-hours contracts — they're entitled to NLW too
- Unpaid trial shifts — any hours worked must be paid at least at NMW
Accommodation offset: If you provide accommodation to workers, there's a specific daily offset rate you can apply. See our separate guide on the NMW accommodation offset.
HMRC enforcement: HMRC's National Minimum Wage team (now part of the Fair Work Agency) actively investigates complaints. Workers can report underpayment anonymously. Penalties are serious — don't wait for an inspector to spot an error.
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Related questions
What is the National Minimum Wage accommodation offset 2026?
The NMW accommodation offset is the amount you can deduct from a worker's pay (or charge them for accommodation) without it counting as an NMW breach. For 2025/26, the offset is £11.10 per day. Check for the April 2026 update via your ComplianceAlert dashboard.
What records does the Fair Work Agency check in hospitality?
In hospitality, the Fair Work Agency focuses on pay records, rota and hours records, holiday pay calculations, tronc and tips distribution records, and zero-hours contract compliance. The sector is a priority for enforcement due to historically high rates of NMW non-compliance.
What can the Fair Work Agency inspect?
The Fair Work Agency (FWA) is the UK's new employment enforcement body, launched in 2025. It can inspect pay records, holiday pay, tipping compliance, and employment agency conduct. It has powers to enter your premises and demand documents.