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UK Minimum Wage April 2026 — New Rates, Who Gets a Rise and by How Much
9 min read
Discovering you are being paid below the legal minimum wage is an infuriating experience. With the National Living Wage rising to £12.71 per hour in April 2026, thousands of UK employers are suddenly non-compliant, either through deliberate wage theft or simple administrative incompetence.
Regardless of their intent, the law is entirely on your side. Here is exactly how to confirm you are being underpaid, the common ways employers accidentally break the rules, and the step-by-step process to claim your unpaid wages.
How to Know If You're Being Underpaid
It's not always as simple as looking at your hourly rate on a payslip. If you are on an annual salary, you must divide your gross annual pay by the actual number of hours you work each year (not just contracted hours, but forced unpaid overtime too).
If you are 21 or over in 2026, and your total pay divided by your total hours equals less than £12.71, you are being underpaid.
Common Ways Employers Underpay Without Realising It
Many minimum wage breaches are entirely accidental, caused by complex payroll deductions or unpaid working time. HMRC frequently penalizes employers for the following:
Deductions That Count Against Minimum Wage
If your employer deducts money from your pay packet for uniforms, tools, or till shortages, and that deduction pushes your hourly rate below the minimum wage, it is illegal. This rule applies even if you agreed to the deduction in your contract.
Unpaid Training Time
If you are required to attend a training day, shadow a senior colleague, or take an e-learning module at home, that is working time. You must be paid at least the minimum wage for those hours.
Sleep-In Shifts and Travel Time
Care workers are frequently underpaid. Travel time between clients counts as working time and must be paid. "Sleep-in" shift rules are complex, but if you are required to be awake for the purpose of working, you must receive minimum wage for those hours.
Step 1 — Raise It With Your Employer
Your first step should always be an informal or formal chat with your HR department or manager. Often, it is a genuine oversight (like forgetting you turned 21 and are now eligible for the higher rate). Send an email outlining the discrepancy so you have a paper trail. Ask them to rectify it and pay the arrears.
Step 2 — Contact ACAS
If your employer ignores you, makes excuses, or threatens you, it's time to get external help. ACAS (the Advisory, Conciliation and Arbitration Service) provides free, impartial advice to employees. You can call their helpline (0300 123 1100) to discuss your situation confidentially.
Step 3 — Report to HMRC
You can report your employer directly to HMRC. This can be done anonymously via an online form on GOV.UK. HMRC investigates every single complaint.
If HMRC finds you have been underpaid, they have massive enforcement powers. They will issue a Notice of Underpayment, forcing the employer to pay you the arrears immediately. In addition, the employer will face severe fines (up to 200% of the arrears owed) and may be publicly "named and shamed" on a government list.
Frequently Asked Questions
What should I do if my employer is paying me below minimum wage?
First, raise it in writing with your employer. If unresolved, contact ACAS for free advice. You can also report anonymously to HMRC, who can legally force your employer to issue backdated payments.
Can salary sacrifice take my pay below minimum wage?
No. Salary sacrifice arrangements (like for pensions or cycle-to-work schemes) cannot legally reduce your effective hourly rate below the National Minimum Wage. Employers must cap deductions to ensure you stay above the threshold.
How far back can I claim underpaid minimum wage?
For Employment Tribunal claims, the time limit is usually 3 months from the last underpayment. However, HMRC enforcement can look back up to 6 years. It is always best to act as quickly as possible.
🔢 Check your rate before you report.
Use our Minimum Wage Checker 2026 to calculate exactly how much you're owed in arrears.