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National Living Wage rises 3.9% to £13.20/hour

By Drooid · Oct 29, 2026 · How we work

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Summary

Finance minister John Healey announced a 3.9% increase, taking effect on 1 April 2027 and applying equally to workers 21+ and 18-20-year-olds.
National Living Wage will rise to £13.20 per hour and the 18-20 Minimum Wage to £11.27.
The increase will benefit about 2.3 million low-paid workers, adding roughly £910 annually to NLW earners.
Business leaders warned higher wage costs could curb hiring of younger workers.

History

Britain’s statutory National Living Wage began after Chancellor George Osborne announced a £7.20-per-hour rate for over-25s in his July 2015 budget, taking effect on 1 April 2016 under the Conservative government and the Low Pay Commission. The target of £9 per hour was finally reached in 2022, and a 2023 announcement by Jeremy Hunt set a £11.44 rate for over-21s from April 2024.

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Britain’s statutory National Living Wage began after Chancellor George Osborne announced a £7.20-per-hour rate for over-25s in his July 2015 budget, taking effect on 1 April 2016 under the Conservative government and the Low Pay Commission. The target of £9 per hour was finally reached in 2022, and a 2023 announcement by Jeremy Hunt set a £11.44 rate for over-21s from April 2024.

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