Millions of Britain's lowest-paid workers will receive a pay rise next spring after Chancellor John Healey confirmed the National Living Wage will increase to £13.21 an hour from 1 April 2027. The 3.9% rise, announced in Healey's first Autumn Budget on Wednesday 28 October, takes the rate for workers aged 21 and over up by 50p from the current £12.71. The government said it had accepted the Low Pay Commission's recommendations in full. For a full-time worker, the increase is worth around £910 a year in gross pay. Younger workers will see the same percentage rise. The 18 to 20-year-old rate goes up to £11.27 an hour, and the 16 and 17-year-old and apprentice rate rises to £8.31. The daily accommodation offset, which applies where an employer provides housing, increases to £11.53.

What changes in April 2027

The uniform 3.9% increase marks a change from the previous two years, when youth rates rose faster than the adult rate. This time the gap stays the same. Around 2.3 million workers are expected to be covered by the increase. The Low Pay Commission submitted its recommendations on 23 October, and the government announced them as part of the Budget package.

What it means for workers and employers

For workers on or near the minimum, the rise is a welcome boost at a time of continued cost-of-living pressure. But employers face higher wage bills, and business groups warn the increase will squeeze pay differentials for supervisors just above the floor. There is also a compliance warning: deductions for uniforms, salary-sacrifice arrangements and unpaid working time such as travel between jobs can push real hourly pay below the legal minimum. Firms are urged to check payroll arrangements well before April.

Sources: GOV.UK Budget 2026, Low Pay Commission summary of evidence 2026.