Minimum Wage Rates 2026: Updated Figures and the HMRC Crackdown.

A pay rise can be entered correctly and a worker can still end up below the legal minimum. A missed birthday, an unpaid opening routine or a uniform deduction can change the calculation.

For businesses in Calne and across Wiltshire, this is a useful time to review the full process. The Government published another minimum wage naming round on 3 September 2026, just ahead of National Payroll Week.

What are the UK minimum wage rates for 2026?

The April 2026 rates are already in force. The previous year’s figures are shown below for comparison, so you can identify any settings or guidance that still need updating.

Source: GOV.UK minimum wage rates. The apprentice rate has its own eligibility rules, explained below.

When should the higher rate appear in payroll?

The increase applies from the first pay reference period beginning on or after the relevant change. That is the period the pay covers, rather than simply the day the money reaches the worker’s account. Acas explains when rate increases must be paid.

Which apprentices qualify for £8.00 an hour?

The apprentice rate applies to apprentices under 19, and to those aged 19 or over who are in the first year of their apprenticeship. Once someone is at least 19 and has completed that first year, the minimum rate for their age applies. Check apprenticeship dates as well as birthdays. See the Acas guidance on apprentice pay.

What is the latest minimum wage crackdown?

In its 3 September 2026 enforcement announcement, the Government named around 660 employers. It reported that around £4 million had been returned to over 27,000 workers, with £7 million in penalties issued to the employers responsible.

The practical message for employers is to check payroll before an error becomes an underpayment issue. Entering the current hourly rate does not, by itself, confirm that every worker has received the minimum wage.

Does HMRC still enforce the minimum wage?

Yes. The Fair Work Agency now has statutory responsibility, while HMRC delivers minimum wage enforcement on its behalf during 2026/27. The Fair Work Agency delivery plan says the full transfer is planned from April 2027.

Employers should therefore continue to take HMRC minimum wage enquiries seriously. The transition does not create a pause in enforcement.

How can an employer pay the right rate and still underpay?

The minimum wage calculation depends on the pay and working hours that count under the rules. There are different calculation methods for hourly work, salaried hours and other arrangements, so a contract’s headline rate is not a complete compliance check. GOV.UK explains how to calculate minimum wage pay.

Here are five situations that can lead to underpayment.

1. If you leave working time out of the calculation.

Required opening and closing tasks, training and travel between work assignments can count as working time. A rota that captures only customer-facing hours may miss part of the job. Ordinary travel between home and work is generally excluded. Check the official guidance on working time against what staff actually do.

2. If uniform or other work costs take pay below the minimum wage.

Costs a worker must meet for the job, such as required uniform or tools that are not reimbursed, can reduce pay for minimum wage purposes. Check both payroll deductions and purchases staff must make themselves. Income Tax and National Insurance deductions do not reduce minimum wage pay in the same way. See what is included in the calculation.

3. If salary sacrifice takes cash pay below the minimum wage.

Salary sacrifice must not reduce cash earnings below the applicable minimum wage. Review the limits when rates, hours or pay change, including where salary sacrifice funds pension contributions. HMRC requires employers to have procedures that maintain minimum wage pay.

4. If you rely on tips to bring pay up to the minimum wage.

Tips and service charges cannot be used to bring a worker’s pay up to the statutory minimum. This matters for hospitality businesses where a payslip or total payment may contain several different elements. Check which payments count towards the minimum wage.

5. If you miss a required pay increase after a birthday or apprenticeship milestone.

Workers moving into the 18 or 21 age band may need a higher rate. Apprentices can also become entitled to their age-related rate after the relevant age and first-year conditions are met. Build reminders into payroll and apply the change from the correct pay reference period.

What can minimum wage underpayment cost a business?

Employers must repay what workers are owed. Where rates have risen since the underpayment, the arrears calculation can require an uplift by reference to current rates.

The current enforcement policy sets out a standard penalty of 200% of the underpayment, subject to a £100 minimum per notice and a £20,000 maximum per worker. The penalty is reduced by half if all unpaid wages and half the penalty are paid in full within 14 days.

Public naming may also follow, subject to the scheme’s criteria and exceptions. The exact outcome depends on the facts and applicable policy.

For a small business, repayments also affect cash available for other commitments. Your forecast should reflect the actual wage bill and any corrections due. Our guide to protecting small business cash flow when customers pay late explains why expected income needs to be assessed alongside outgoing payments.

A practical minimum wage check for your next pay run.

1. Confirm each worker’s rate. Check age, apprenticeship status and the date any increase should have applied.
2. Compare recorded hours with the actual job. Ask managers about opening, closing, training and travel between assignments.
3. Review deductions and salary sacrifice. Identify work costs staff bear themselves, as well as items processed through payroll.
4. Check the relevant pay periods. Use the calculation method that applies to the worker’s arrangement, including salaried hours where relevant.
5. Correct any shortfall promptly. If you discover underpayment, calculate and pay the arrears immediately. Review whether the same problem affects other workers or earlier periods.
6. Keep the evidence and assign an owner. Make it clear who checks changes, supplies working-time information and reviews the final payroll.

RiverView view: build these checks into every pay run.

A reliable payroll process connects current rates with accurate information from the workplace. The person processing wages needs to know when a worker’s age band changes, when hours increase and when deductions need reviewing.

For an owner-managed business, giving those checks a clear place in the routine can help reduce avoidable corrections and give staff confidence in their pay. RiverView Portfolio’s payroll and HR services can support the administration behind that process.