The National Living Wage will increase by 3.9% to £13.21 per hour from April 1, 2027, up from £12.71 per hour currently, delivering a confirmed £910 annual boost to full-time workers aged 21 and over. The rise, announced by Andy Burnham's Government, is set to benefit around 2.3 million people across the UK.
Who Benefits from the Wage Increase
According to HM Treasury, the uplift means people over 21 who work full time will see their gross annual earnings increase by £910 per year from April. The National Living Wage applies to workers aged 21 and over.
Younger workers aged 18, 19 and 20 who receive the National Minimum Wage will also benefit from higher pay in the 2027 to 2028 tax year, with rates set to rise by 3.9% on April 1. The National Minimum Wage will increase to £11.27 per hour, up from £10.85 per hour currently.
Government Statement on the Rise
Confirming the wage increase from April, HM Treasury said: “To support low-paid workers across the UK, the government is raising the National Living Wage and National Minimum Wages, which is expected to benefit around 2.3 million workers.
“On 1 April 2027, the National Living Wage will increase by 3.9% to £13.21 per hour, equivalent to an increase of £910 in the gross annual earnings of a full-time worker on the National Living Wage. The National Minimum Wage for 18- to 20-year-olds will also increase by 3.9% to £11.27 per hour.
“By accepting the Low Pay Commission’s recommendations in full this year, the government is ensuring workers are rewarded fairly for their work, while protecting jobs, backing businesses, and strengthening the conditions for economic growth.”
Comparison with Inflation and Previous Rises
The 3.9% increase is above the Consumer Prices Index (CPI) inflation rate, which the Office for National Statistics (ONS) confirmed as 3.5% in the 12 months to September 2026.
The rise ends the trend of hiking the National Minimum Wage for 18 to 20-year-olds by more than the rate for older workers, instead raising it in line with the rate for over-21s. It is a smaller rise than the 26% increase Labour has put in place for younger workers since returning to power in 2024, and means rates still remain below the National Living Wage for older workers.
The Low Pay Commission (LPC), which advises the government on minimum wage rises, said earlier this year that the National Living Wage would need to increase by around 3.7% in 2027 to £13.18 an hour in order to keep up with how it expected average pay to rise. In March, the government tweaked the commission's remit to give it more scope to take labour market conditions into account when setting the minimum wage for 18- to 20-year-olds.
