---
title: "UK Minimum Wage Reported to Rise Nearly 4% to About £13.20"
canonical: "https://www.metaintro.com/blog/uk-minimum-wage-rise-nearly-4-percent-april-2027"
language: "en"
author: "drashtigarach"
published: "2026-10-27T15:32:16.000Z"
modified: "2026-10-27T15:32:16.000Z"
---

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# UK Minimum Wage Reported to Rise Nearly 4% to About £13.20 (About $17.60) an Hour

The UK National Living Wage is reported to rise 3.9% to about £13.20 (about $17.63) an hour from April 2027. See what changes for workers aged 18 to 20.

[![Drashti Garach](https://cdn.metaintro.com/rs:fill:40:40/q:72/plain/images/5719d740-e510-42bc-8017-e040d145f35f_1766029465094.png)Drashti Garach @DrashtiGarach](/blog/author/drashtigarach)

[October 27, 2026](/blog/archive/2026/10)13 min read

![A barista making coffee at an espresso machine in a sunny British cafe](https://cdn.metaintro.com/rs:fill:1200:675/q:78/plain/images/uk-minimum-wage-rise-nearly-4-percent-april-2027-hero.jpg)

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The [National Living Wage is expected to rise to about £13.20 (about $17.63) an hour from £12.71 (about $17), an increase of 3.9%](https://www.khaleejtimes.com/world/europe/britain-minimum-wage-rise-3-point-9-percent), for workers aged 21 and over, with Chancellor John Healey expected to [announce it at the Budget](https://www.lbc.co.uk/article/healey-minimum-wage-rise-neets-5HjdkSy_2/) on [Wednesday 28 October](https://www.smebrief.co.uk/national-living-wage-april-2027). The new rate would apply [from April 1 2027 to more than a million low-paid workers](https://britbrief.co.uk/business/employment/minimum-wage-to-rise-to-1320-in-budget-reports-say.html). The figures, reported by the [Financial Times and The Times](https://britbrief.co.uk/business/employment/minimum-wage-to-rise-to-1320-in-budget-reports-say.html), are not yet confirmed, and the [finance ministry declined to comment on the report, according to Reuters](https://www.khaleejtimes.com/world/europe/britain-minimum-wage-rise-3-point-9-percent). For [Metaintro](https://www.metaintro.com) readers in hourly jobs across the UK, from retail and hospitality to care, this guide sets out what the expected rates would mean in pay, what changes for workers under 21, who is legally covered and what to do if your pay falls short.

## What Exactly Has Been Reported About the April 2027 Rate?

Healey is also expected to announce at the Budget that he has [accepted recommendations from the Low Pay Commission](https://www.lbc.co.uk/article/healey-minimum-wage-rise-neets-5HjdkSy_2/), the independent body that advises the government on the minimum wage. The [Department for Business and Trade published the remit on 16 March 2026](https://www.gov.uk/government/publications/national-minimum-wage-and-national-living-wage-low-pay-commission-remit-2026), and it asked the Commission to send its advice to [the Prime Minister and the Secretary of State for Business and Trade by the end of October 2026](https://www.gov.uk/government/publications/national-minimum-wage-and-national-living-wage-low-pay-commission-remit-2026/low-pay-commission-remit-2026-national-living-wage-and-national-minimum-wage).

## How Does £13.20 (About $17.63) Compare With the Low Pay Commission's Projection?

The [expected rate](https://www.khaleejtimes.com/world/europe/britain-minimum-wage-rise-3-point-9-percent) sits just above the Commission's own central projection. In its spring consultation letter, the Commission estimated that keeping the National Living Wage at two-thirds of median earnings would need [a rate between £13.02 (about $17.40) and £13.34 (about $17.80), or an increase of between 2.4 and 5.0 per cent, in April 2027, with a central estimate of £13.18 (about $17.60)](https://www.gov.uk/government/consultations/low-pay-commission-consultation-2026/lpc-consultation-letter-2026).

That two-thirds line matters because [the remit says the government believes two-thirds of median hourly earnings should continue to be the key reference point for future rates](https://www.gov.uk/government/publications/national-minimum-wage-and-national-living-wage-low-pay-commission-remit-2026/low-pay-commission-remit-2026-national-living-wage-and-national-minimum-wage). The same remit lists [the condition of the labour market, the cost of living, the impact on businesses and competitiveness and wider macroeconomic conditions](https://www.gov.uk/government/publications/national-minimum-wage-and-national-living-wage-low-pay-commission-remit-2026/low-pay-commission-remit-2026-national-living-wage-and-national-minimum-wage) as factors to weigh.

> These projected figures above are indicative only. The final recommended rate will be subject to the LPC’s deliberations later in the year, which must also take account of the state of economy, labour market and living costs, Baroness Philippa Stroud, Chair of the Low Pay Commission, wrote, according to [the Commission's consultation letter](https://www.gov.uk/government/consultations/low-pay-commission-consultation-2026/lpc-consultation-letter-2026).

## How Much More Would a Full-Time Worker Earn?

In one worked example, a worker on 40 paid hours a week for 52 weeks, or [2,080 paid hours a year](https://www.smebrief.co.uk/national-living-wage-april-2027), earns [£26,436.80 a year](https://www.smebrief.co.uk/national-living-wage-april-2027) (about $35,300) at the current adult rate. At the Commission's central estimate, the same hours pay [£27,414.40 (about $36,600), a difference of £977.60 (about $1,300) from a 47p (about $0.63) hourly rise](https://www.smebrief.co.uk/national-living-wage-april-2027).

Part-time staff gain in proportion to their hours, since a worker on half those paid hours gets [half the wage increase](https://www.smebrief.co.uk/national-living-wage-april-2027).

The rise follows several large steps. The adult rate was [£11.44 (about $15.30) from April 2024 and £12.21 (about $16.30) from April 2025](https://www.gov.uk/national-minimum-wage-rates), and this April it went up again, [a 4.1% rise](https://www.personneltoday.com/hr/national-living-wage-2026-2027-2028/), a bigger step than the [rise expected for 2027](https://www.khaleejtimes.com/world/europe/britain-minimum-wage-rise-3-point-9-percent).

## What Happens to the Rate for 18 to 20 Year Olds?

This is where the reported plan changes direction. The rate for 18, 19 and 20 year olds is expected to rise [broadly in line with the rate for older workers, to around £11.27 (about $15) an hour from £10.85 (about $14.50)](https://www.khaleejtimes.com/world/europe/britain-minimum-wage-rise-3-point-9-percent). If confirmed, that would [end a trend seen in recent years in which the minimum rate for younger workers has increased by more than that for older workers](https://www.khaleejtimes.com/world/europe/britain-minimum-wage-rise-3-point-9-percent).

The recent pace has been fast. The 18 to 20 rate rose [by 8.5%](https://www.personneltoday.com/hr/national-living-wage-2026-2027-2028/) this April, the [third consecutive year it has risen substantially more than the NLW](https://www.personneltoday.com/hr/national-living-wage-2026-2027-2028/). The same band was [£8.60 (about $11.50) from April 2024 and £10 (about $13.35) from April 2025](https://www.gov.uk/national-minimum-wage-rates). The gap to the adult rate is now [£1.86 an hour](https://www.mirror.co.uk/news/politics/budget-john-healey-minimum-wage-37812430) (about $2.50).

The official goal has not been dropped on paper. The government [remains committed to removing the discriminatory age bands for adults and aligning the National Minimum Wage for people aged 18 to 20 years old with the National Living Wage](https://www.gov.uk/government/publications/national-minimum-wage-and-national-living-wage-low-pay-commission-remit-2026/low-pay-commission-remit-2026-national-living-wage-and-national-minimum-wage), but gives the Commission [full flexibility to determine the pace and ultimate timing of that alignment, with priority being given to the employment prospects of younger workers](https://www.gov.uk/government/publications/national-minimum-wage-and-national-living-wage-low-pay-commission-remit-2026/low-pay-commission-remit-2026-national-living-wage-and-national-minimum-wage). The Commission has also looked at [lowering the age eligibility for the NLW to 20 from April 2027](https://www.personneltoday.com/hr/national-living-wage-2026-2027-2028/), which would put more people on the adult rate, though it would also [lower the median earnings the rate is based on](https://www.personneltoday.com/hr/national-living-wage-2026-2027-2028/).

For scale, a full move of an under-21 worker from the current youth rate to the central adult projection would raise annual pay by [£4,846.40 (about $6,470), or approximately 21.47%](https://www.smebrief.co.uk/national-living-wage-april-2027) on the same full-time hours. Full alignment in April 2027 was [a stress test, not an announced policy date](https://www.smebrief.co.uk/national-living-wage-april-2027).

> The UK now has one of the highest minimum wages of any advanced economy. While there may be scope to go further, the current weaknesses in the labour market and record number of Neets mean that now is not the right time for pushing rates up faster than typical earnings, Nye Cominetti, principal economist at the Resolution Foundation, said, according to [the LBC report](https://www.lbc.co.uk/article/healey-minimum-wage-rise-neets-5HjdkSy_2/).

## Why Is the Youth Rate Slowing Down?

The shift [reflects concerns from businesses and economists that young people are being priced out of the jobs market](https://britbrief.co.uk/business/employment/minimum-wage-to-rise-to-1320-in-budget-reports-say.html). Some [940,000 young people are now classed as Neets](https://www.lbc.co.uk/article/healey-minimum-wage-rise-neets-5HjdkSy_2/), meaning not in education, employment or training, a figure that has [risen by 195,000 in the past two years](https://www.lbc.co.uk/article/healey-minimum-wage-rise-neets-5HjdkSy_2/). Youth unemployment is [at 15.6 percent, with 54,000 more young people out of work than a year ago](https://www.lbc.co.uk/article/healey-minimum-wage-rise-neets-5HjdkSy_2/), and [starter jobs for young people are scarce](https://www.metaintro.com/blog/uk-starter-jobs-fall-49-percent-neet-2026).

Simon Emeny, executive chairman of Fuller's, said earlier this year that pay policy was having the [opposite effect](https://britbrief.co.uk/business/employment/minimum-wage-to-rise-to-1320-in-budget-reports-say.html) because businesses are hiring fewer workers.

Others read the evidence differently. The [Trades Union Congress](https://www.mirror.co.uk/news/politics/budget-john-healey-minimum-wage-37812430) rejected the warnings about equalising the rates, pointing to analysis showing [85% of young workers are already paid above the minimum wage](https://www.mirror.co.uk/news/politics/budget-john-healey-minimum-wage-37812430). Earlier moves to bring 23 and 24 year olds, and later 21 and 22 year olds, onto the adult rate [didn't impact employment rates](https://www.mirror.co.uk/news/politics/budget-john-healey-minimum-wage-37812430), in the Low Pay Commission's assessment.

Separately, the government this month [unveiled plans to create 100,000 additional jobs in the retail sector by the end of the parliament](https://www.lbc.co.uk/article/healey-minimum-wage-rise-neets-5HjdkSy_2/). Part of that is Opening Shift, a Department for Work and Pensions programme that [will offer 11,000 18-24 year-olds two-to-four-week placements at retailers including John Lewis, Tesco and Costa Coffee](https://www.lbc.co.uk/article/healey-minimum-wage-rise-neets-5HjdkSy_2/).

## What Do Apprentices and Under-18s Get Now?

No new rate for the youngest workers or apprentices has been reported. Under-18s and qualifying apprentices currently get [£8](https://www.smebrief.co.uk/national-living-wage-april-2027) (about $10.70) an hour. The apprentice rate applies to apprentices [aged under 19, or aged 19 or over and in the first year of their apprenticeship](https://www.gov.uk/national-minimum-wage-rates).

Apprentices aged 19 or over who have completed the first year [are entitled to the minimum wage for their age](https://www.gov.uk/national-minimum-wage-rates), so a 21-year-old in that position gets the adult rate.

For 2027, the government asked the Commission to recommend under-18 and apprentice rates [at a level which supports the employment prospects for each group](https://www.gov.uk/government/publications/national-minimum-wage-and-national-living-wage-low-pay-commission-remit-2026/low-pay-commission-remit-2026-national-living-wage-and-national-minimum-wage). It also asked for [evidence on the effectiveness and operation of the apprentice National Minimum Wage](https://www.gov.uk/government/publications/national-minimum-wage-and-national-living-wage-low-pay-commission-remit-2026/low-pay-commission-remit-2026-national-living-wage-and-national-minimum-wage) and to recommend [a new accommodation offset rate](https://www.gov.uk/government/publications/national-minimum-wage-and-national-living-wage-low-pay-commission-remit-2026/low-pay-commission-remit-2026-national-living-wage-and-national-minimum-wage).

## Who Is Legally Entitled to the Minimum Wage?

People classed as workers are covered. They [must be at least school leaving age to get the National Minimum Wage and 21 or over to get the National Living Wage](https://www.gov.uk/national-minimum-wage/who-gets-the-minimum-wage). Cover extends to [part-time, casual and agency workers, apprentices, trainees, workers on probation, disabled workers and foreign workers](https://www.gov.uk/national-minimum-wage/who-gets-the-minimum-wage), among others.

A signed contract cannot opt you out. [Contracts for payments below the minimum wage are not legally binding](https://www.gov.uk/national-minimum-wage/who-gets-the-minimum-wage), and the worker is still owed the legal rate.

Some groups are excluded. They include [self-employed people running their own business, company directors, volunteers, members of the armed forces and higher and further education students on a work placement of up to one year](https://www.gov.uk/national-minimum-wage/who-gets-the-minimum-wage), plus people on a [Jobcentre Plus Work trial for up to 6 weeks](https://www.gov.uk/national-minimum-wage/who-gets-the-minimum-wage).

If you think you are underpaid, free advice is a phone call away. The [Acas helpline on 0300 123 1100](https://www.gov.uk/pay-and-work-rights-helpline) runs Monday to Friday, and [complaints about the National Minimum Wage go to HM Revenue and Customs](https://www.gov.uk/pay-and-work-rights-helpline). The government has also [published the names of employers that underpaid their staff](https://www.metaintro.com/blog/uk-minimum-wage-naming-list-underpaid-workers).

## What Does a Higher Wage Floor Cost Employers?

The cost runs past wages. Carrying forward the [current ordinary employer rate of 15% and £5,000 (about $6,680) annual secondary threshold](https://www.smebrief.co.uk/national-living-wage-april-2027) for National Insurance, the central projection adds [£1,124.24 (about $1,500) a year to wages and employer National Insurance](https://www.smebrief.co.uk/national-living-wage-april-2027) for one full-time adult worker where no allowance remains. Eligible employers can offset some of that, since [Employment Allowance can currently reduce an eligible employer's annual employer NI bill by up to £10,500](https://www.smebrief.co.uk/national-living-wage-april-2027) (about $14,000).

Young workers also cost employers less in National Insurance. The current under-21 employer National Insurance rate is [0% below the upper secondary threshold of £967 a week (about $1,290)](https://www.smebrief.co.uk/national-living-wage-april-2027), so below that limit an employer pays no employer National Insurance on an under-21 worker's wages.

Higher floors also squeeze pay above them. [Entry-level pay rose by 12.9% in 2024, compared with 7.6% for intermediate roles and 5.8% for senior staff](https://www.personneltoday.com/hr/national-living-wage-2026-2027-2028/), an effect Brightmine calls squeezeflation. The minimum wage has [risen faster than RPI inflation in 17 of the past 26 years](https://www.personneltoday.com/hr/national-living-wage-2026-2027-2028/), and [63% of employers cite limited promotion or progression opportunities as a reason for staff turnover](https://www.personneltoday.com/hr/national-living-wage-2026-2027-2028/).

## What Else in the Budget Could Reach Low-Paid Workers?

The wage rise is one of several expected measures. The Carer's Allowance cliff edge, where unpaid carers lose their [£83.30-a-week payment if they earned a penny over the weekly earnings limit](https://www.mirror.co.uk/news/politics/budget-john-healey-minimum-wage-37812430) (about $111), is set to be replaced so that [only £1 (about $1.34) of support will taper away for every additional £1 (about $1.34) earned](https://www.mirror.co.uk/news/politics/budget-john-healey-minimum-wage-37812430).

People who drive for work are also in line for help. Tax-free mileage rates are set to be [locked in for the next 15 years at 55p a mile (about $0.73) for the first 10,000 business miles](https://www.mirror.co.uk/news/politics/budget-john-healey-minimum-wage-37812430), for jobs such as nurses, care workers and builders.

New parents are set to get a wider safety net. Ministers [plan to extend parental pay to more than 150,000 parents each year, including self-employed fathers who had previously missed out](https://britbrief.co.uk/business/employment/minimum-wage-to-rise-to-1320-in-budget-reports-say.html), with two weeks of support [currently worth up to £194 a week](https://www.mirror.co.uk/news/politics/budget-john-healey-minimum-wage-37812430) (about $259).

## What This Means for Job Seekers, and What Should You Do Next?

For adult workers on the legal floor, the [expected rise is close to what the Commission had already signalled](https://www.khaleejtimes.com/world/europe/britain-minimum-wage-rise-3-point-9-percent), so it is a predictable pay step, not a surprise. The bigger shift is for the youngest adult workers. After [three years of fast catch-up](https://www.personneltoday.com/hr/national-living-wage-2026-2027-2028/), the reported plan would slow their rise to the adult pace and [end a trend seen in recent years](https://www.khaleejtimes.com/world/europe/britain-minimum-wage-rise-3-point-9-percent) of faster rises for younger workers. The case made for that choice is that young people risk being [priced out of the jobs market](https://britbrief.co.uk/business/employment/minimum-wage-to-rise-to-1320-in-budget-reports-say.html) while youth unemployment is high. Your first job is more about getting in the door, and the pay jump comes when you [turn 21 and qualify for the National Living Wage](https://www.gov.uk/national-minimum-wage/who-gets-the-minimum-wage).

- **Check your own rate on 1 April.** The new rates [change on 1 April every year](https://www.gov.uk/national-minimum-wage-rates). Compare your first April payslip with the published table once the government publishes the rates.
- **Watch your birthday and apprenticeship year.** Turning 21 (unless you are in the first year of an apprenticeship), or [finishing the first year of an apprenticeship if you are 19 or over](https://www.gov.uk/national-minimum-wage-rates), moves you to a higher legal rate, and your employer has to apply it.
- **Use Acas if pay looks short.** [Acas gives free and confidential advice](https://www.gov.uk/pay-and-work-rights-helpline), and the number is in the entitlement section above.
- **Look at what sits around the pay.** Structured placements such as the [Opening Shift work experience programme](https://www.lbc.co.uk/article/healey-minimum-wage-rise-neets-5HjdkSy_2/) and apprenticeships build work experience while the youth rate is expected to rise at the adult pace.

Lacey Kaelani, [Metaintro](https://www.metaintro.com)'s CEO, puts it this way: A wage floor tells you the least an employer can pay you, not what you are worth. Learn your legal rate, then aim above it.

## Related Articles

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- [The UK Is Racing to Track Teens Slipping Out of Work and Training](https://www.metaintro.com/blog/uk-tracking-teens-slipping-out-of-work-training)
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- [How to Find a First Job With No Experience and Get Hired](https://www.metaintro.com/blog/how-do-i-find-a-first-job-with-no-experience)
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- [Skills Training Programs and How to Choose One That Actually Raises Your Pay](https://www.metaintro.com/blog/skills-training)

## People Also Asked

### Q: What will the UK minimum wage be in April 2027?

A: It is reported to rise to [around £13.20 (about $17.63) from £12.71 (about $17) for workers aged 21 and over](https://www.lbc.co.uk/article/healey-minimum-wage-rise-neets-5HjdkSy_2/), but the rate is only official once the government publishes the rates.

### Q: How much will 18 to 20 year olds get from April 2027?

A: The 18 to 20 rate is reported to go [from £10.85 (about $14.50) to around £11.27 (about $15), an increase of 3.9 per cent](https://www.mirror.co.uk/news/politics/budget-john-healey-minimum-wage-37812430), the same pace as the adult rate.

### Q: What did the Low Pay Commission project for April 2027?

A: It projected [a central estimate of £13.18 (about $17.60)](https://www.gov.uk/government/consultations/low-pay-commission-consultation-2026/lpc-consultation-letter-2026), within a range of £13.02 (about $17.40) to £13.34 (about $17.80), to keep the National Living Wage at two-thirds of median earnings.

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