AROUND two million of Britain’s lowest-paid workers are expected to receive a pay rise next year, with new minimum wage rates set to be unveiled in the Budget.
Chancellor John Healey is by nearly 4% when he delivers his statement on Wednesday, October 27.
How much is the National Living Wage going up in 2027?
According to The Times , the rate for workers aged 21 and over is expected to increase from £12.71 to around £13.20 an hour from April 2027.
That represents a rise of 49p, or approximately 3.9%, and follows a 50p increase in April 2026, when the legal minimum for older workers went up from £12.21.
The , which advises the on minimum wage rates, estimated in April that £13.18 would be needed next year to keep the adult rate at two-thirds of typical hourly earnings.
However, that was a forecast – not a decision – and the could still contain a different figure.
What will the minimum wage be for 18 to 20-year-olds?
People aged 18, 19 and 20 are reportedly in line for a rise from £10.85 to about £11.27 an hour.
The 42p increase would also amount to roughly 3.9%, compared with an 8.5% rise this April.
The Government has pledged to bring the youth rate into line with the , but has given the Low Pay Commission flexibility over how quickly that happens.
A similar percentage rise for both groups would leave the gap in place.
Hospitality businesses have warned that rapid increases for younger workers could make it harder to offer entry-level .
Rates for 16 and 17-year-olds and qualifying apprentices have not yet been announced for 2027, with both currently receiving at least £8 an hour.
Apprentices aged 19 or over who have completed their first year are entitled to the usual minimum wage for their age.
How much extra will workers earn?
For someone aged 21 or over working 37.5 hours a week, the projected 49p hourly rise would add £955.50 to annual pay before tax.
At the same hours, people aged 18 to 20 would gain around £819 a year if the new rate is approved.
Both figures assume 52 weeks of paid work at the applicable minimum and do not reflect tax, or changes in hours.
Workers already earning more than the new legal minimum are not automatically entitled to an equivalent increase.
When will the 2027 minimum wage rise start?
The new rates are due to take effect across the from April 1, 2027.
For payroll purposes, increases apply from the start of the next pay reference period, meaning not everybody will see the higher rate immediately.
The rules cover part-time and zero-hours workers, not just people in full-time employment, and employers must pay at least the legal minimum.
Anyone unsure whether their wages comply can check using the calculator on GOV.UK or seek advice from the Advisory, Conciliation and Arbitration Service (Acas).
