UK National Living Wage rises to GBP 12.71 per hour from April 1

The UK National Living Wage increases from GBP 12.21 to GBP 12.71 per hour on 1 April 2026, with the 18-to-20 rate rising from GBP 10.00 to GBP 10.85 and the 16-to-17 rate from GBP 7.55 to GBP 8.00. The accommodation offset also rises to GBP 11.10 per day. These changes coincide with the launch of the Fair Work Agency on April 7, which takes over minimum wage enforcement from HMRC with significantly stronger powers.

The timing is notable — HMRC has published what may be its final “naming and shaming” list of minimum wage offenders before handing enforcement to the FWA. Under the new agency, penalties for underpayment run at 200% of the sum due (capped at GBP 20,000 per individual), reduced to 100% if paid within 14 days. The FWA will also gain new powers to enforce holiday pay for the first time.

For remote workers on UK contracts — whether based in the UK or working for UK employers from abroad — these changes matter in two ways. First, the higher NLW pushes more roles closer to the compliance threshold, meaning employers need to be more vigilant. Second, the consolidated enforcement model under the FWA makes it more likely that breaches will be detected and acted upon, particularly for workers who may previously have fallen through the gaps between multiple enforcement bodies.