The National Living Wage is expected to rise from £12.71 to about £13.20 an hour from April 2027 — a rise of roughly 3.9% — according to a report in The Times ahead of the Autumn Budget on Wednesday 28 October 2026. For someone working 37.5 hours a week that is about £956 more a year before tax, or roughly £57 a month after Income Tax and National Insurance. The government has not yet confirmed the figure, so check the Budget for the final rate. Below, we calculate what it means for three illustrative workers.
What has been reported, and what is confirmed
Current rates are set out on GOV.UK: since April 2026, the National Living Wage for workers aged 21 and over is £12.71, the rate for 18–20 year olds is £10.85, and the under-18 and apprentice rate is £8.00.
On 26 October 2026, The Times reported — without naming sources — that the 21+ rate would rise to about £13.20 and the 18–20 rate to about £11.27. The Low Pay Commission's earlier central estimate for April 2027 was about 3.7%, to £13.18. The Treasury declined to comment, and the rates are expected to be confirmed at the Budget on 28 October. New rates normally take effect on 1 April.
| Rate | April 2026 (confirmed) | April 2027 (reported, not confirmed) | Change |
|---|---|---|---|
| National Living Wage (21+) | £12.71 | ~£13.20 | +£0.49 (~3.9%) |
| 18–20 rate | £10.85 | ~£11.27 | +£0.42 (~3.9%) |
| Under 18 / apprentice | £8.00 | Not reported | — |
Sources: GOV.UK National Minimum Wage rates; The Times report via LADbible and Allwork, 26 October 2026.
Three workers, one year: illustrative examples
We calculated 52 weeks of pay at the old and expected new rate, then took off Income Tax (20% above the £12,570 Personal Allowance) and employee National Insurance (8% above £12,570), using 2026/27 thresholds. These are illustrative examples: pensions, student loans, tax codes and benefits will change your own result.
| Illustrative worker | Gross a year now | Gross a year at £13.20 | Extra before tax | Extra after tax & NI | Per month after tax |
|---|---|---|---|---|---|
| Amira, 34, full-time 37.5 hrs | £24,785 | £25,740 | £956 | £688 | £57 |
| Joanne, 52, part-time 20 hrs | £13,218 | £13,728 | £510 | £367 | £31 |
| Ellie, 19, full-time 37.5 hrs (18–20 rate) | £21,158 | £21,977 | £819 | £590 | £49 |
Our calculations, rounded. 52 paid weeks. Illustrative only.
The catch: Universal Credit and frozen thresholds
If you claim Universal Credit and already earn above your work allowance, the 55% taper means your UC award falls by 55p for every extra £1 you take home. Take a worker on 30 hours: the rise adds about £550 a year after tax and National Insurance, but after the taper she would keep roughly £248 of it — about £21 a month.
Income Tax thresholds are also frozen, so more of each pay rise is taxed. And UK inflation was 3.5% in the year to September 2026, so a 3.9% rise is only slightly ahead of prices — see our breakdown of what September's inflation costs your household.
A £956 pay rise can shrink to £248 by the time tax, National Insurance and the Universal Credit taper have taken their share.
A pay rise that arrives as £20 or £50 a month is easy to lose in everyday spending — unless you decide where it goes before April.
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See what's inside →How this rise compares with recent years
The expected rise is the smallest in cash terms for several years. The 21+ rate went from £11.44 in April 2024 to £12.21 in April 2025 (+6.7%), then to £12.71 in April 2026 (+4.1%). A move to £13.20 would be about +3.9%.
Check your payslip: the weekly numbers
| Hours a week | Gross a week at £12.71 | Gross a week at £13.20 | Difference |
|---|---|---|---|
| 37.5 | £476.63 | £495.00 | +£18.37 |
| 30 | £381.30 | £396.00 | +£14.70 |
| 20 | £254.20 | £264.00 | +£9.80 |
Our calculations, before tax. Salaried workers should divide pay by hours actually worked to check the hourly rate.
Your five-step plan before April 2027
- Check the Budget on 28 October for the confirmed rates — the reported £13.20 could change.
- Check your payslip in April: from your first pay period starting on or after 1 April, your hourly rate must be at least the new legal minimum.
- If you claim Universal Credit, use the official calculator or ask Citizens Advice how the rise affects your award.
- Give the rise a job: decide now whether your extra £30–£57 a month goes to an emergency buffer, a debt or a bill that is rising.
- If you think you are underpaid, you can complain to HMRC through GOV.UK; it is free and confidential.
Planning around the Budget? Our 8 Budget rumours vs what's already set and the UK money calendar until January 2027 will help. Free, impartial guidance is also available from MoneyHelper and Citizens Advice.
Frequently asked questions
What will the National Living Wage be in April 2027?
The Times reports it will rise to about £13.20 an hour for workers aged 21 and over, up from £12.71. The government has not confirmed this; the official rate is expected at the Budget on 28 October 2026.
How much more will I earn with the 2027 minimum wage rise?
Full-time at 37.5 hours a week, about £956 more a year before tax, or around £688 (£57 a month) after Income Tax and National Insurance, in our calculation.
When does the new minimum wage start?
Minimum wage rates normally change on 1 April each year, so the new rates would apply from April 2027.
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- GOV.UK – National Minimum Wage and National Living Wage rates
- LADbible, 'Millions of people to get pay rise in government budget this week' (citing The Times), 26 Oct 2026
- Allwork, 'U.K. Minimum Wage Expected To Rise Nearly 4% In 2027', Oct 2026
- GOV.UK – Income Tax rates and Personal Allowances
- GOV.UK – Universal Credit: how your earnings affect your payments
- ONS – Inflation and price indices
Educational content only. Not personalised financial advice.