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Minimum Wage Rises to £12.71 Per Hour from April 2026
Created: 06/01/2026
News/Events Category: General News
This item will show under the following categories: Funding and Finance Governance
The UK Government has announced increases to minimum wage rates from 01 April 2026.
Also called the 'National Living Wage', the minimum wage rate for all workers aged 21 and over, will rise by 4.1% to £12.71 per hour. The minimum wage for 18-20 year-olds will increase to £10.85, and the rate for 16-17 year-olds will increase to £8.00.
In announcing these increases, the Government has accepted in full the recommendations made by the Low Pay Commission, an independent body that advises the government about the National Living Wage and the National Minimum Wage.
The increase in the National Living Wage will ensure a pay rise for low-paid workers. It will meet the Government’s aim to ensure the rate does not drop below two-thirds of median earnings. The increase to the 18-20 year old rate makes progress towards alignment with the National Living Wage.
The new rates are:
- 21 and over - from £12.21 to £12.71 per hour
- 18-20 - from £10.00 to £10.85 per hour
- 16-17 and apprentices - from £7.55 to £8.00 per hour
National Living Wage vs real Living Wage
The National Living Wage from the Government differs from the real Living Wage set by the Living Wage Foundation. The real Living Wage is the only UK wage rate calculated on the real cost of living and is paid voluntarily by over 16,000 UK businesses and organisations.
The real Living Wage is set to increase from £12.60 per hour to £13.45 on 01 May 2026 - 5.2% higher than the new National Living Wage for people aged 21 and over.
Why real Living Wage matters
Well supported employees who live with stability and security show improved mental health and relationships and they're more productive at work too.
For the third sector, paying the real Living Wage is an important step towards the Scottish Government's Fair Work First policy which aims to raise employers' practices to at least the minimum standards. The mandatory minimum standards include payment of at least the real Living Wage and provision of appropriate channels for effective workers' voice, such as trade union recognition.
In order for third sector organisations to be awarded public sector grants i.e. funding from the Scottish Government or Fife Council, organisations must comply with Fair Work First or be working towards a Fair Work First policy.
FVA's commitment to fair pay in the third sector
FVA is firmly committed to treating staff fairly despite the challenging financial and funding climate in which we operate, and aim to lead by example, being one of the first employers in Fife to receive Living Wage accreditation, and also one of the first in Scotland to be triple accredited, adding Living Hours and Living Pension in 2025.
Kenny Murphy, Chief Executive of FVA said “We are committed to giving our employees a fair deal, rewarding their hard work and commitment despite the many financial pressures we face as an organisation. Our Board of Trustees has been fully committed to taking steps to ease financial stress on our employees, such as pensions. There are many real Living Wage accredited third sector organisations in Fife and we strongly encourage them to explore further accreditation to make our sector more robust and sustainable.”
More information
Real Living Wage: For the real cost of living | Living Wage Foundation
Fair Work First guidance from the Scottish Government: Fair Work First: guidance - gov.scot
FVA's Fair Work First guidance document
We can help support you with Fair Work First implementation - e-mail [email protected] or call 0800 389 6046.
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