The National Living Wage for workers aged 21 and over will rise by 3.9% to £13.21 an hour from 1 April 2027, Chancellor John Healey confirmed in the Autumn Budget delivered on 28 October 2026. The rate rises from £12.71, an increase of 50p an hour, and the government says the change is expected to benefit around 2.3 million of Britain's lowest-paid workers. The government accepted the Low Pay Commission's recommendations in full.

Younger workers rise by the same percentage. The rate for 18 to 20-year-olds goes from £10.85 to £11.27 an hour, while the rate for 16 and 17-year-olds and for apprentices rises from £8.00 to £8.31 an hour. The Budget document puts the full-time gain for a worker aged 21 or over at £910 a year in gross pay. Until the new rates take effect, the April 2026 rates continue to apply, so nothing changes in pay before April 2027.

What employers should plan for

The rise lands alongside a wider set of Budget measures, but the wage change itself is straightforward: staff already paid at or above the new rates cost no more because of it, while staff on or near the floor must be moved up. Employers whose pay scales sit close to the statutory minimum will need to budget for the increase and check where it pushes workers into a higher band. The government's decision to raise all age rates by the same 3.9% also pauses, for now, the earlier direction of bringing younger workers' pay into line with the adult rate more quickly.

Workers should not expect the money early. The 2027 rates are confirmed, but they do not apply until 1 April 2027, and the current £12.71 rate remains the legal floor until then.