National Minimum Wage increases from April 2027

In the Budget on 28 October 2026, the Government confirmed that minimum wage rates will rise again from 1 April 2027. It has accepted the Low Pay Commission's recommendations in full, so every rate will go up by 3.9%.

The National Living Wage for workers aged 21 and over will rise by 50p to £13.21 an hour. For a full-time worker, that is roughly £900 more a year before tax. Around 2.3 million workers are expected to benefit.

The new minimum wage rates from 1 April 2027

• National Living Wage (21 and over): £13.21 an hour, up from £12.71 (+50p)
• 18 to 20 year old rate: £11.27 an hour, up from £10.85 (+42p)
• 16 to 17 year old rate: £8.31 an hour, up from £8.00 (+31p)
• Apprentice rate: £8.31 an hour, up from £8.00 (+31p)
• Accommodation offset: £11.53 a day, up from £11.10 (+43p)

The apprentice rate applies to apprentices aged under 19, and to apprentices aged 19 or over who are in the first year of their apprenticeship. After that, they must be paid at least the rate for their age.

What has changed for younger workers?

In recent years, the 18 to 20 rate has risen faster than the adult rate, as the Government moves towards one adult rate for everyone aged 18 and over. This year, the Low Pay Commission recommended pausing that process because demand for young workers has slowed. The 18 to 20 rate is therefore rising by the same 3.9% as the National Living Wage.

The gap between the two rates is still smaller than it was a few years ago, and the plan to bring them together has not been dropped. Employers who rely on younger staff should expect bigger rises for this group in future years.

What employers need to do

• Check who is affected. Look beyond staff on the minimum rate. Anyone paid just above it may also be affected, especially where pay differences between roles need to be kept.
• Update payroll in time. The new rates apply from the first pay reference period starting on or after 1 April 2027.
• Watch birthdays and apprenticeships. When a worker moves into a new age band, or an apprentice finishes their first year, their minimum rate goes up.
• Check deductions and salary sacrifice. Uniform costs, deductions and salary sacrifice schemes can take pay below the legal minimum, even if the headline rate looks right.
• Budget for the full cost. Remember the knock-on effect on employer National Insurance, pension contributions and holiday pay.
• Tell your staff. Write to employees to confirm their new rate of pay, and update contracts where needed.

Why getting it right matters

HMRC enforces the minimum wage. Employers who underpay must pay back the arrears at current rates and can be fined up to 200% of the amount owed. They can also be publicly named. Most underpayments happen by mistake, so it pays to check now, before April.

Need support?

If you would like help reviewing your pay rates, updating contracts or planning for the April 2027 increases, give us a call or email info@warwickhr.com to find out how we can help.