Updated 06/03/26 – rates effective from 1st April 2026

This heading includes Guarantee Pay, the Living Wage, the National Minimum Wage.

Current statutory or similar rates are given. The rate for the previous year is given in brackets. The previous year usually refers to the tax year i.e. from 6th April unless noted otherwise.

Guarantee Pay ~

If there is insufficient work, an individual may be laid off or placed on shorter hours provided the individual’s terms contain a provision for laying of or being placed on shorter working hours. If not, the employer is required to pay the normal full rate of pay. If an employer has his own lay off or shorter hours scheme, it must not be less than the Guarantee Pay scheme.

Amount

Maximum = £41 (£39) per day
Limit of 5 days pay in any 3 month rolling period i.e. maximum of £205 (£195)

Conditions for Guarantee Pay

If an individual’s terms permit being laid off but the employer does not pay the individual, a limited entitlement to be paid may arise under the provisions of Guarantee Pay if the following conditions are met:

• Not paid by the employer and laid off for at least one day;
• Willing to carry out alternative work even if not within his/her contract terms;
• Is available for work;
• Has been employed continuously for at least one month;
• The reason for being laid off is not due to industrial action

If you’ are not being paid by the employer, you may be entitled to guarantee pay.

TIP – if an individual is laid off or put on short-time, he/she may apply for redundancy and claim redundancy pay if the change in working hours has lasted either 4 weeks in a row or for 6 weeks in a 13-week period.

The Living Wage ~

The Living Wage (sometimes called the Real Living Wage) is a voluntary agreement by an employer to pay a set minimum pay rate to all staff aged 18 or over. The rate is determined from the research and principles used by the Living Wage Foundation. It is different to the National Minimum Wage which is explained under a separate heading below.

Employers who adopt the Living Wage should ensure that it is implemented by 1st May of the relevant year.

The rates for 2026 and 2025 are shown below.

Rates from 1st May 2026

London   £14.80 per hour; Elsewhere  £13.45 per hour.

Rates from 1st May 2025

London   £13.85 per hour; Elsewhere  £12.60 per hour.

Note – The Living Wage should be distinguished from the National Minimum Wage which is set out below.
The National Minimum Wage is the statutory minimum wage set by Parliament according to the age of an individual.  

National Minimum Wage ~

Changes from from April 2026

From 1st April 2025, the National Minimum Rates rates increased and two major changes came into effect.

i) Those aged 21 and over will be entitled to the highest rate of the National Minimum Wage. Previously the highest hourly rate applied to those aged 23 and over.

Another change is that these rates now apply to ‘live in’ workers of the employer.

The rates and age bands from 1st April 2025 and from 1st April 2026 are shown below.

From 1st April 2025	£ per hour	From 1st April 2026	£ per hour
21 years and over (sometimes called the National Living Wage) *	£12.21	21 years and over (sometimes called the National Living Wage) *	£12.71
18 to 20 years	£10.00	18 to 20 years	£10.85
16 and 17 years	£7.55	16 and 17 years	£8.00
Apprentice Rate i) aged under 19 or ii) in his/her first year and aged 19+ as an apprentice ii) Aged 19 or over and has completed the first year of his/her apprenticeship – entitled to be paid at least the minimum wage for his/her age	£7.55	Apprentice Rate i) If aged under 19 or ii) in his/her first year and aged 19+ as an apprentice iii) Aged 19 or over and has completed the first year of his/her apprenticeship – entitled to be paid at least the minimum wage for his/her age	£8.00

* Remember that the above is different to the Living Wage rate – see the Living Wage heading above.

TIP – the new rates above do not have to be paid until the start of the individual’s first full pay period that begins in April.

Living Accommodation – Offset ~

New rate from 1st April 2026.

£11.10 (£9.10) per day maximum; weekly offset £69.93 (£63.70) – the rules vary in some circumstances.

Underpayment of the National Minimum Wage – Fines ~

–  A 200% fine is payable of the amount underpaid unless that is paid within 14 days;
–  The minimum fine is £100 and the maximum is £20,000.

The maximum may be imposed upon an employer for each worker who is underpaid.  A director of a company which fails to pay the National Minimum Wage may be banned for up to 15 years.

Failure to implement the National Minimum Wage Rates may lead to an organisation/trader being named and shamed publicly by the Government.