The Government has confirmed an increase to the National Minimum Wage and National Living Wage, following the Autumn Budget announcement on 28th October 2026.
From 1st April 2027, the National Living Wage will rise to £13.21 per hour, representing a 3.9% increase. The changes will affect approximately 2.3 million workers across the UK and have important implications for employers planning their recruitment and salary budgets for the year ahead.
What are the new minimum wage rates for April 2027?
The Government has accepted the Low Pay Commission’s recommendations in full, confirming the following hourly rates:
| Age category | April 2026 | April 2027 |
|---|---|---|
| 21 and over | £12.71 | £13.21 |
| 18 to 20 | £10.85 | £11.27 |
| 16 to 17 | £8.00 | £8.31 |
| Apprentice rate | £8.00 | £8.31 |
For a full-time employee aged 21 or over, the increase represents approximately £910 in additional gross annual earnings, based on the Government’s calculations.
You can read the official Low Pay Commission announcement for further details.
What does this mean for employers?
Whilst the increase is welcome news for lower-paid workers, it creates additional financial considerations for businesses, particularly those employing larger numbers of hourly-paid staff.
The impact may also extend beyond employees earning the statutory minimum. As entry-level wages increase, employers may need to review salaries for more experienced employees to maintain appropriate pay differentials between roles and levels of responsibility. This is often referred to as pay compression.
For businesses recruiting administrative, customer service, warehouse or other support staff, maintaining competitive salaries will remain important for attracting and retaining good candidates.
Other pay considerations from the Autumn Budget
The minimum wage announcement comes against a backdrop of continued pressure on employment costs. Employers are still managing the impact of increased employer National Insurance contributions introduced in April 2025, making the overall cost of employing staff an important consideration when setting budgets.
Meanwhile, frozen income tax thresholds mean that employees receiving pay rises may see a greater proportion of their earnings subject to tax, reducing the benefit to their take-home pay. These factors reinforce the importance of having a clear and realistic salary strategy.
For further analysis, see Reuters’ coverage of the minimum wage announcement and MoneySavingExpert’s Autumn Budget breakdown.
Is your business paying competitive salaries?
With employment costs changing again, now is a sensible time for employers to review their existing salary structures and recruitment budgets ahead of April 2027. However, statutory minimum wage increases tell only part of the story. Salaries vary considerably depending on location, industry, experience and candidate availability.
At Plus One Recruitment, we work closely with employers across our local markets, giving us valuable insight into salary expectations and recruitment trends.
Would you like to know whether your salaries are competitive?
Whether you’re planning to recruit, reviewing existing salaries or preparing next year’s staffing budget, feel free to download your FREE copy of our 2026 Salary Guide for Oxfordshire & Warwickshire.
