The National Living Wage will increase to £13.21 an hour from 1 April 2027 after the Government accepted the Low Pay Commission’s recommendations in full.
Government confirms new rates
The Government has confirmed that the National Living Wage will rise from £12.71 to £13.21 an hour on 1 April 2027, a 50p or 3.9% increase for workers aged 21 and over. The decision, announced in the Budget on 28 October 2026, accepts the independent Low Pay Commission’s recommendations in full. The Treasury expects around 2.3 million workers to benefit from the increases across the statutory wage rates.
What workers will be paid
The minimum wage for 18- to 20-year-olds will increase from £10.85 to £11.27 an hour. For 16- and 17-year-olds and eligible apprentices, the rate will rise from £8.00 to £8.31. All these rates increase by 3.9%. The accommodation offset will rise to £11.53 per day.
| Category | April 2026 | April 2027 |
| 21 and over | £12.71 | £13.21 |
| 18–20 | £10.85 | £11.27 |
| 16–17 | £8.00 | £8.31 |
| Eligible apprentices | £8.00 | £8.31 |
What the rise means for annual pay
The Treasury says the increase for an adult worker paid the National Living Wage is equivalent to £910 in additional gross annual earnings for a full-time worker. This illustration assumes 35 paid hours per week over 52 weeks: £0.50 multiplied by 35 and 52. Actual earnings depend on hours worked, and take-home pay depends on deductions including income tax and National Insurance.
Commission balances pay and employment risks
The Low Pay Commission said it had balanced protecting workers’ living standards with employers’ capacity to absorb higher costs and concerns about recruitment. Its recommended £13.21 rate is below its estimated £13.44 needed to reach the Government’s reference point of two-thirds of median hourly earnings by October 2027. The Commission expects the recommended increase to protect the wage rate in real terms over the relevant forecast period, while acknowledging economic uncertainty.
Separate rates retained for younger workers
Although the Government has an ambition to lower National Living Wage eligibility from 21 to 18, the Commission recommended the same percentage increase for workers aged 18 to 20 this year. It cited weak demand for younger workers and risks to youth employment. The adult and younger-worker rates will therefore remain different in April 2027.
UK-wide rules and employer obligations
The statutory rates apply throughout the United Kingdom from 1 April 2027. Employers must pay eligible workers at least the appropriate legal minimum. These statutory rates should not be confused with the voluntary Real Living Wage and London Living Wage benchmarks set by the Living Wage Foundation.