National Living Wage April 2027: £13.21 and the new rates

The National Living Wage rises by 3.9% to £13.21 an hour from 1 April 2027 for workers aged 21 and over. Every other minimum wage rate also rises by 3.9%: £11.27 for 18 to 20 year olds, and £8.31 for 16 and 17 year olds and apprentices. The government accepted the Low Pay Commission’s recommendations in full on 28 October 2026, the day of Budget 2026.

What are the minimum wage rates from April 2027?

The new rates apply from 1 April 2027, according to the Department for Business and Trade announcement.

The increases are 50p, 42p, 31p and 31p an hour. The accommodation offset rises by 43p a day. GOV.UK’s rates page already shows both years.

How much is the rise worth?

The Treasury says the National Living Wage increase is worth £910 a year in gross pay to a full-time worker. The Chartered Institute of Payroll Professionals (CIPP) reports that about 2.3 million workers are expected to benefit.

For a quick example, a worker aged 21 or over on 30 hours a week earns at least £396.30 a week from April 2027, against £381.30 today. Use the salary take-home calculator to see the effect after tax and National Insurance.

Why did the Low Pay Commission choose 3.9%?

The Low Pay Commission (LPC) balanced fairness to workers against employers’ ability to absorb costs. Its chair, Baroness Philippa Stroud, said wage growth “is not leading to hiring”. The recommendations, submitted on 23 October 2026, were agreed unanimously.

The LPC’s advice letter makes three points advisers should know:

• Two-thirds of median earnings is not reached. The LPC estimates £13.44 (5.7%) would have been needed to hit that reference point by October 2027. It remains committed to reaching it “when economic conditions allow”.
• Youth rate alignment is paused. The government wants the National Living Wage age threshold lowered to 18. The LPC paused moving the 18 to 20 rate towards the adult rate this year because youth unemployment is above its Covid peak, but still sees scope to bring 20 year olds in later.
• Employer costs weighed heavily. Employers cited energy prices, supply chain costs and, above all, higher employer National Insurance bills. Several employer bodies asked for below-inflation rises for the first time.

Which rate applies to your worker?

Use age and apprenticeship status on the first day of the pay reference period.

• If the worker is 21 or over, pay at least £13.21.
• If the worker is 18, 19 or 20, pay at least £11.27.
• If the worker is 16 or 17, pay at least £8.31.
• If the worker is an apprentice under 19, or 19 or over in the first year of the apprenticeship, pay at least £8.31.
• If the apprentice is 19 or over and has finished the first year, pay the rate for their age.

Where do employers get caught out?

Most underpayments come from how pay is structured, not the headline rate. Minimum wage pay is checked over each pay reference period, so these items can push an hourly rate below the legal minimum:

• salary sacrifice for pensions, cycles or cars, where post-sacrifice pay falls below the minimum
• deductions for uniforms, tools or equipment the worker must have
• unpaid time such as training, security checks, travel between assignments or handovers
• accommodation charges above the £11.53 daily offset
• salaried workers whose annual hours rise without a pay review

HMRC enforces the minimum wage for DBT. In March 2026 the government named 389 employers who owed over £7.3 million to around 60,000 workers, with about £12.6 million in penalties. Our minimum wage guide explains the rules on pay and working time.

What should employers do now?

1. List every worker within 50p of the new rates. Include salaried staff, by dividing annual pay by contracted hours.
2. Check birthdays and apprenticeship anniversaries. Staff moving into a higher age band or out of their first apprenticeship year need the higher rate from the next pay reference period.
3. Retest salary sacrifice schemes. See salary sacrifice explained for how sacrifice interacts with the minimum wage.
4. Update payroll software for 1 April 2027. Pay periods that start on or after that date use the new rates.
5. Budget for employer costs. Employer National Insurance stays at 15% above £96 a week in 2027-28, so every pay rise adds to it. Model the cost with the employer NI calculator, and see payroll changes for 2027-28 for the other Budget measures.
6. Watch the Employment Rights Act timetable. Some reforms land in the same year. See Employment Rights Act 2025: what changes and when.

Frequently asked questions

What is the National Living Wage from April 2027?

£13.21 an hour for workers aged 21 and over, from 1 April 2027. That is a 50p, or 3.9%, increase on the April 2026 rate of £12.71.

What is the minimum wage for an 18 year old in 2027?

£11.27 an hour from 1 April 2027, up from £10.85. The same rate applies to 19 and 20 year olds.

What is the apprentice rate from April 2027?

£8.31 an hour. It applies to apprentices under 19, and to apprentices aged 19 or over in the first year of their apprenticeship.

Is the National Living Wage being extended to 18 to 20 year olds?

Not in 2027. The government’s aim is to lower the age threshold to 18, but the Low Pay Commission paused alignment this year and recommended a 3.9% rise for the 18 to 20 rate instead.

What is the accommodation offset for 2027?

£11.53 a day from April 2027, up from £11.10. Any accommodation charge above the offset reduces the worker’s pay for minimum wage purposes.

When will the 2028 minimum wage rates be announced?

The government has not given a date. The Low Pay Commission’s full annual report is due in the new year, and recent rates have been confirmed in the autumn before each April increase.