Daily Junction.mobi portalNews · July 12, 2026 · Daily Junction Editorial Team · 7 min
The National Living Wage is £11.44 per hour for over-21s (2024) — here's how minimum wage works, who gets it, and why it's below the real living wage.
The National Living Wage (NLW) is the UK's minimum wage for workers aged 21 and over, currently £11.44 per hour (April 2024), rising to £12.21 in April 2025. This is the legal minimum — employers cannot pay less. But the NLW is not enough to live on. The real Living Wage (a voluntary higher rate calculated by the Living Wage Foundation) is £12.60 per hour (£13.85 in London), 9% higher than the NLW. Around 3 million workers (10% of the workforce) earn minimum wage, concentrated in retail, hospitality, care, and cleaning. Here is everything you need to know about the UK minimum wage — how it works, who gets it, and why it is still not enough.
The UK has different minimum wage rates depending on age and whether you are an apprentice.
£11.44 per hour (April 2024)
£12.21 per hour (April 2025)
This is the main minimum wage rate for workers aged 21 and over. It was introduced in 2016 (initially for 25+, lowered to 21+ in 2021).
Annual salary (full-time, 37.5 hours per week):
18–20 years old: £8.60 per hour (April 2024)
Under-18: £6.40 per hour (April 2024)
Apprentices: £6.40 per hour (April 2024) — applies to apprentices under 19, or 19+ in their first year
The government argues that lower youth rates:
Critics argue that this is age discrimination — a 20-year-old doing the same job as a 21-year-old should get the same pay. The Low Pay Commission (which advises the government on minimum wage) has recommended equalising rates by 2024, but the government has not acted.
Around 3 million workers (10% of the workforce) earn minimum wage or close to it (within 50p per hour).
Minimum wage is the same across the UK, but the cost of living varies:
The real Living Wage is a voluntary higher minimum wage calculated by the Living Wage Foundation based on the actual cost of living (rent, food, bills, transport, childcare).
The real Living Wage is 9% higher than the National Living Wage (£11.44).
Over 14,000 employers voluntarily pay the real Living Wage, including:
Employers who pay the real Living Wage can display the Living Wage Employer logo, which is good for reputation and recruitment.
Because it is voluntary and costs more. Small businesses (especially in retail and hospitality) say they cannot afford to pay the real Living Wage without raising prices or cutting jobs.
The Low Pay Commission (LPC) is an independent body that advises the government on minimum wage rates. The LPC considers:
The government usually accepts the LPC's recommendations, but it can reject them.
The government has set a target for the National Living Wage to reach two-thirds of median earnings by 2024. This would be around £12.21 per hour (achieved in April 2025).
Employers who pay below minimum wage face:
Workers can report underpayment to HMRC at gov.uk/report-underpayment-national-minimum-wage. HMRC investigates and can force employers to pay back wages (up to 6 years).
Enforcement is weak. HMRC conducts only 1,500 inspections per year (for 1.5 million employers), and many workers do not report underpayment because they fear losing their jobs.
Common forms of underpayment:
No. The National Living Wage (£11.44) is not enough to live on, especially in high-cost areas like London.
Income (full-time, 37.5 hours per week):
Expenses:
Shortfall: £148 per month (before phone, internet, clothing, entertainment, emergencies)
This person is in poverty despite working full-time.
The real Living Wage (£12.60, £13.85 London) is calculated to cover the actual cost of living. A full-time worker on the real Living Wage in London earns:
This is still tight, but it is enough to cover basic expenses.
Arguments for:
Arguments against:
Most research shows that moderate increases in minimum wage (5–10%) have little or no effect on employment. Workers benefit from higher pay, and the economy benefits from higher consumer spending.
But large increases (20%+) can cost jobs, especially in low-margin sectors like retail and hospitality.
The UK's minimum wage increases (2016–2024) have been moderate (5–7% per year), and employment has remained strong.
The National Living Wage (NLW) is £11.44 per hour for workers aged 21+ (April 2024), rising to £12.21 in April 2025, earning £23,888 per year full-time. Younger workers get lower rates: £8.60 (18-20), £6.40 (under-18), £6.40 (apprentices), creating age discrimination in pay. The real Living Wage (voluntary) is £12.60 per hour (£13.85 in London), calculated by the Living Wage Foundation based on actual cost of living. 3 million workers earn minimum wage (10% of workforce), concentrated in retail, hospitality, care, and cleaning sectors. Employers who pay below minimum wage face fines up to £20,000 per worker and public naming and shaming, but enforcement is weak with only 1,500 inspections per year. The National Living Wage is not enough to live on — it is 9% below the real Living Wage, and workers in London and other high-cost areas struggle to make ends meet. The government should raise the NLW to match the real Living Wage (£12.60, £13.85 London), equalise youth rates (end age discrimination), and strengthen enforcement (more inspections, tougher penalties). Low pay is a national scandal, and the minimum wage should be a living wage. Workers who work full-time should not live in poverty.
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