The National Living Wage is expected to rise by nearly 4% in Wednesday's Budget, according to reports on 27 October 2026 citing The Times. The rate for workers aged 21 and over is expected to rise by 3.9%, from £12.71 to approximately £13.20 an hour, taking effect in 2027. The Treasury declined to comment on the reports, and the figure remains unconfirmed until the Chancellor speaks.

Younger workers too

The National Minimum Wage for workers aged 18 to 20 is expected to rise at a similar rate, from £10.85 to around £11.27 an hour. The expected rises follow recommendations from the independent Low Pay Commission, which advises the government on minimum wage rates.

What it would mean for the alignment pledge

If confirmed, younger workers' rates would no longer rise faster than older workers' rates, putting Labour's manifesto pledge to align the two rates during this Parliament in doubt, according to the reports. A separate market report on 27 October also noted the Chancellor was expected to raise the National Living Wage by around 4%. Workers and employers will know for certain only when the Budget is delivered on Wednesday 28 October.

Note: this story reports expectations ahead of the Budget; the rates are not confirmed until announced. Sources: reports of The Times coverage; TradingView market report, 27 October 2026.