National Living Wage vs Minimum Wage — What's the Difference?
The UK has three different 'living wages' and a minimum wage. This page explains clearly what each one is, who it applies to, and what the current rates are for 2026.
UK Wage Rates Compared — 2026
| Rate | Set By | Legal Requirement? | 2026 Rate | Who it applies to |
|---|---|---|---|---|
| National Minimum Wage | Government | Yes | £7.55–£10.00 | Under 21s, apprentices |
| National Living Wage | Government | Yes | £12.21 | Workers aged 21+ |
| Real Living Wage | Living Wage Foundation | No (voluntary) | £13.85 | All workers (voluntary) |
| London Living Wage | Living Wage Foundation | No (voluntary) | £15.75 | London workers (voluntary) |
Understanding the Different UK Wage Rates
The National Minimum Wage (NMW) is the legal floor — no employer can legally pay below it. Different rates apply depending on the worker's age and whether they are an apprentice. From April 2026 the rates are: 21+ = £12.21/hr, 18-20 = £10.00/hr, under 18 = £7.55/hr, apprentice = £7.55/hr.
The National Living Wage (NLW) is not a separate rate — it is simply the name given to the adult (21+) National Minimum Wage since 2016. Despite the similar name to the 'Real Living Wage', it is set by the government and is legally mandatory. The government's target is for the NLW to equal two-thirds of median UK earnings.
The Real Living Wage (£13.85/hr) is calculated annually by the Resolution Foundation based on what people actually need to live on. It is voluntary — employers who pay it can display the Living Wage Foundation accreditation. Over 14,000 UK employers are accredited. The London Living Wage (£15.75/hr) reflects the higher cost of living in the capital.
National Living Wage History Since 2016
| Year | NLW Rate | Age Threshold | Annual (37.5hrs) |
|---|---|---|---|
| April 2026 | £12.21 | 21+ | £23,801 |
| April 2025 | £12.21 | 21+ | £23,801 |
| April 2024 | £11.44 | 21+ | £22,308 |
| April 2023 | £10.42 | 23+ | £20,319 |
| April 2022 | £9.50 | 23+ | £18,525 |
| April 2021 | £8.91 | 23+ | £17,375 |
| April 2020 | £8.72 | 25+ | £17,004 |
| April 2019 | £8.21 | 25+ | £16,010 |
| April 2018 | £7.83 | 25+ | £15,269 |
| April 2017 | £7.50 | 25+ | £14,625 |
| April 2016 | £7.20 | 25+ | £14,040 |
Frequently Asked Questions
What is the National Living Wage?
The National Living Wage (NLW) is the legally required minimum hourly pay for workers aged 21 and over in the UK. From April 2026 it is £12.21/hr. Despite having 'Living Wage' in its name, it is set by the government and is legally mandatory — unlike the Real Living Wage which is voluntary.
What is the difference between NMW and NLW?
The National Minimum Wage (NMW) refers to the lower rates for younger workers (under 21) and apprentices. The National Living Wage (NLW) is the higher rate for workers aged 21 and over. Both are legally mandatory. The Real Living Wage is a separate, higher voluntary rate set by the Living Wage Foundation.
What is the Real Living Wage?
The Real Living Wage is a voluntary hourly rate set by the Living Wage Foundation based on the actual cost of living. The 2026 rates are £13.85/hr (UK) and £15.75/hr (London). Over 14,000 employers are accredited Living Wage employers. It is higher than the legal National Living Wage.