UK minimum wage to rise 3.9% to $17.63 an hour from April 2027
- The National Living Wage rises 3.9% to £13.21 ($17.63) an hour from April 2027.
- The rate for 18 to 20 year olds rises to £11.27 ($15.04).
- The 16-17 Year Old Rate and Apprentice Rate both rise to £8.31 ($11.09).
- The Low Pay Commission submitted its recommendations on Oct. 23, 2026.
LONDON, UNITED KINGDOM — The United Kingdom will raise its National Living Wage by 3.9% to £13.21 ($17.63) an hour from April 2027, lifting the legal pay floor for all workers aged 21 and over. Rates for younger workers and apprentices will rise by the same percentage, with the rate for 18 to 20 year olds moving to £11.27 ($15.04).
Government accepts commission’s advice in full
The government accepted in full the recommendations of the Low Pay Commission (LPC), the independent body that advises it on the minimum wage, the commission said in an announcement on Oct. 28. The National Living Wage rises by 50p ($0.67), while the 16-17 Year Old Rate and the Apprentice Rate both rise by 31p ($0.41) to £8.31 ($11.09).
The LPC submitted its recommendations on Oct. 23, and commissioners agreed them unanimously. The new rate will not reach the commission’s reference point of two thirds of median earnings, but the LPC said it sits above the range of inflation forecasts from April 2027 to March 2028 and will protect the rate in real terms.
Growth without hiring
“Economic growth has been better than expected this year, but this growth is not leading to hiring,” said Philippa Stroud, chair of the LPC. “Furthermore, our stakeholders are worried about the risks of a further energy price shock to the economy.”
Stroud said it had been challenging to reach an increase “that is both fair to workers and gives employers the resilience they need to grow their businesses.”
Youth rate alignment paused
The government still wants to lower the age of eligibility for the National Living Wage from 21 to 18. The LPC said there is still potential to lower the age limit, especially for 20 year olds, but that demand for young workers has slowed and the risks of ambitious rises have increased.
It therefore recommended pausing alignment and raising the youth rate by the same 3.9%. The commission also said employment for 16 and 17 year olds has deteriorated over recent years, though the evidence does not point to minimum wage increases as the cause.
What it means for employers
For U.K. employers with staff paid at the legal minimum, hourly labor costs rise 3.9% from April 2027, at a time when the LPC says growth is not turning into hiring.
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