The National Living Wage will rise to £13.21 an hour from 1 April 2027, the Government has announced, in a 3.9 per cent increase that lifts the legal pay floor for workers aged 21 and over by 50p an hour.

The increase was announced on 28 October 2026, alongside the Autumn Budget, after the Government accepted in full the recommendations of the Low Pay Commission, the independent body that advises ministers on minimum wage rates. Every minimum wage rate rises by the same 3.9 per cent.

The new rates from April 2027

From 1 April 2027, the National Living Wage for workers aged 21 and over rises from £12.71 to £13.21 an hour. The rate for 18 to 20-year-olds increases by 42p to £11.27, while the rates for 16 and 17-year-olds and for apprentices rise by 31p to £8.31. The accommodation offset, the amount an employer can deduct for accommodation, rises to £11.53 a day.

The new rates apply from the first pay reference period starting on or after 1 April 2027. Until then, the current rates remain in force.

Why the commission chose 3.9 per cent

The Low Pay Commission submitted its advice to the Government on 23 October, and its members agreed the recommendations unanimously. The commission said the £13.21 rate falls short of its reference point of two-thirds of median earnings, but sits above the range of inflation forecasts for April 2027 to March 2028, so it should protect the rate's value in real terms.

The commission also recommended pausing the move to bring the 18 to 20 rate into line with the adult rate, because demand for young workers has slowed. Its chair, Baroness Philippa Stroud, said the commission had faced tough economic headwinds and had worked to recommend an increase that was fair to workers while giving employers room to grow.

The commission will publish its full annual report, setting out the evidence behind the figures, in the new year.