New Legal Minimum Wage Rates from April 2026
From the 1 April 2026, the government has increased the minimum wage rates across all age bands, including the National Living Wage for adults. Employers must ensure that after any deductions - such as uniforms, salary sacrifice, or unpaid working time - staff are still paid at least the legal minimum.
- £12.71 per hour - the National Living Wage for workers aged 21 and over (up from £12.21).
- £10.85 per hour - for workers aged 18–20 (up from £10.00).
- £8.00 per hour - for 16–17-year-olds and apprentices (up from £7.55).
HMRC’s minimum wage rules ensure employees receive at least the statutory pay they are legally entitled to; employers can be investigated and fined if they fail to comply and it is illegal for employers to pay below them - including after deductions that take a worker below the statutory rate.
Alongside the statutory minimum wage, the Living Wage Foundation continues to highlight the gap between the government’s legal minimum and what people actually need to meet the cost of living. The Foundation welcomes the increase to the legal minimum, but it is clear that these rises do not automatically mean wages now meet everyday living costs. The Living Wage Foundation cites £13.45 per hour (£14.80 in London) as the Living wage – a significant difference to the statutory minimum wage.
The real Living Wage encourages employers to go further - paying a wage linked to the actual costs of living rather than the legal minimum, and charities will want to consider whether they can move closer to the real Living Wage, with budget constraints in mind.
What does this mean for your charity?
For charity employers, the latest increase to the statutory minimum wage presents both a financial pressure and a values decision:
- Budgets will need re-forecasting to absorb higher wage costs
- Grant funding and restricted income may limit flexibility, with still needing to be compliant with the minimum wage
- Trustees should understand the compliance risks of falling below HMRC thresholds
From a governance perspective, being transparent about pay decisions - and the constraints behind them - is just as important as the numbers themselves.
Final thoughts
Now is a good time for charity trustees, finance teams and senior leaders to review pay structures, payroll processes and budgeting assumptions in light of the National Minimum Wage increase.
Ensuring compliance with HMRC rules protects both staff and the organisation, while open discussion about pay - including how it compares with the real Living Wage - supports transparency and trust.
Even where resources are limited, taking a proactive, informed approach to pay is an important step in living out a charity’s mission and values.