The lowest-paid workers in the UK will earn £13.21 an hour from 1 April 2027, after Chancellor John Healey announced a 3.9% rise in the National Living Wage in his first Budget on Wednesday 28 October. The rate for workers aged 21 and over rises from £12.71 to £13.21 an hour, while the National Minimum Wage for 18 to 20-year-olds rises 3.9% from £10.85 to £11.27, and the rate for 16 to 17-year-olds and eligible apprentices rises from £8.00 to £8.31. The accommodation offset rises 3.9% to £11.53 a day.

A 3.9% rise across all age bands

The Treasury says the rise benefits around 2.3 million workers, with a full-time worker on the Living Wage gaining £910 gross a year, and that the Low Pay Commission's recommendations have been accepted in full. One detail marks a change of pattern: this is the first time since 2023 that the 18 to 20 rate has not risen faster than the Living Wage, narrowing the gap between youth and adult rates more slowly than in recent years.

The youth-rate argument

The politics of that detail are already contested. Conservative leader Kemi Badenoch says Healey has broken a pledge to equalise youth and adult rates, while Business Secretary Jonathan Reynolds says equalisation still applies over time. What is not in dispute is the headline: from next April, the legal floor for the lowest-paid adult workers stands at £13.21 an hour.

Sources: GOV.UK Budget 2026 and Personnel Today.