UK Raises Minimum Wage to £13.21 an Hour From April 2027

The British government announced on 28 October 2026 that the National Living Wage for workers aged 21 and over will increase from £12.71 to £13.21 an hour on 1 April 2027. The 50-pence rise amounts to 3.9%, and the government said it had accepted the independent Low Pay Commission's recommendations in full.

The statutory rate for 18- to 20-year-olds will increase from £10.85 to £11.27 an hour. The minimum for 16- and 17-year-olds and eligible apprentices will rise to £8.31. These groups will receive the same 3.9% percentage increase as older workers, rather than the faster increases for younger employees seen in some earlier years.

The chancellor told Parliament that about 2.3 million low-paid workers would be covered by the increase. That is an estimate of the number affected, not a count of employees who have already received higher pay. The new rates do not take effect until April 2027, and existing statutory rates continue to apply until then.

For a worker paid the adult minimum for 37.5 hours each week, a 50-pence hourly increase would add £18.75 a week, or £975 over 52 weeks before taxes and other deductions, assuming unchanged hours. The government's separate estimate of £910 in additional annual gross pay uses its own full-time-hours assumption. Actual gains will depend on hours worked and employment arrangements.

The Low Pay Commission said its recommendation reflected a difficult balance between protecting low-paid employees against rising prices and limiting risks to hiring. It also said the adult rate would remain below its reference point of two-thirds of median earnings. The commission identified weakening demand for younger workers as one reason not to accelerate the youth rate's convergence with the adult minimum this year.

The National Living Wage is a legally required minimum for the relevant age group, unlike voluntary living-wage benchmarks set by outside organisations. Employers will need to update payroll systems before the new rates begin. The announcement was part of the October 28 Budget, not a new wage payment made on October 29.